Scandinavian Working Papers in Economics
SIFR Research Report Series,
Institute for Financial Research
No 62: Is Online Trading Gambling with Peanuts?
Anders Anderson ()
Additional contact information
Anders Anderson: Stockholm University, Postal: Department of Economics, 106 91 Stockholm, Sweden
Abstract: If individuals derive a small utility from gambling, we should observe high turnover in stock portfolios that are of only marginal importance to them. By the use of detailed individual financial data, as weIl as trades from a Swedish online broker, we measure the frequency and cost of online trading in the cross-section and reject this hypothesis. Investors who have online portfolios that constitute a large share of risky assets are more likely to trade, trade more aggressively when they do trade, have lower trading performance, and less wealth. Trading losses are therefore mainly carried by those who can afford to carry them the least.
Keywords: Investor behavior; gambling; online trading; overconfidence
38 pages, May 15, 2008
Full text files
sifr-wp62.pdf
Questions (including download problems) about the papers in this series should be directed to Anki Helmer ()
Report other problems with accessing this service to Sune Karlsson ().
RePEc:hhs:sifrwp:0062This page generated on 2024-09-13 22:17:04.