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To sell or not to sell? Behavior of shareholders during price collapses

arXiv:cond-mat/0102042 · doi:10.1142/S0129183101001390

Abstract

It is a common belief that the behavior of shareholders depends upon the direction of price fluctuations: if prices increase they buy, if prices decrease they sell. That belief, however, is more based on ``common sense'' than on facts. In this paper we present evidence for a specific class of shareholders which shows that the actual behavior of shareholders can be markedly different.

9 pages, 1 figure. To appear in International Journal of Modern Physics C