An Empirical Study on Investors Perception Towards Investment in Stock Market

Abstract

Investors' perception plays a crucial role in shaping stock market trends and investment behaviors. Understanding the factors influencing investor decisions can provide insights into market dynamics and help formulate strategies to enhance investor participation. This study aims to analyze investor perception towards stock market investment, focusing on key determinants such as risk tolerance, financial literacy, market sentiment, and behavioral biases. Comprehending these behavioral factors is essential for both investors and market authorities to maintain stability and efficiency in financial markets. The advancement of financial technology and digital trading platforms has significantly altered investor perspective. The advent of online trading, algorithmic trading, and real-time market data has enhanced investors' access to financial markets. This technological innovation has disadvantages, including information overload and vulnerability to market rumors. Social media platforms, financial blogs, and online forums have emerged as significant sources of investing information, occasionally resulting in misinformation or market manipulation. Due to the fluctuating characteristics of stock market investments, comprehending investor sentiment is crucial for financial institutions, governments, and individual investors. Using primary and secondary data sources, the study examines how demographic factors, economic conditions, and psychological influences shape investment decisions. The findings will contribute to the existing body of knowledge on investment psychology and market efficiency, providing recommendations for policymakers, financial institutions, and individual investors.