Impact of Behavioural Finance on Investors’ Attitudes Towards Investment in Secondary Market

This research explores some of the unanswered important questions about stock markets that can be examined and investigated by an emerging field, behavioural finance. It also explains the factors responsible for the unusual movements in the stock markets, which could not be fully explained by the theories of traditional finance. This study shall examine three important attitudes displayed by the investors. They are: ‘Expectations’ those investors have about the future performance of the stock market in India; ‘Confidence’ that investors have regarding their investments; and ‘Herd Instincts’ so investors tend to herd together. Present study shall also analyze the Investors’ preference towards traditional trading and online trading.