Assignment-2

Determinants of individual investment decisions in

investment-based crowdfunding
Investment-based crowdfunding allows individuals to invest in new or
early-stage companies in exchange for equity or a share in the profits.
When making investment decisions in crowdfunding campaigns,
individuals may consider various factors, including:
 Risk tolerance: Investors may have different levels of risk
tolerance, which may influence their investment decisions. Some
investors may prefer lower-risk investments, while others may be
willing to take on higher risks for potentially higher returns.
 Return on investment: Investors may consider the potential
return on investment when deciding whether to invest in a
crowdfunding campaign. They may assess the company's
financials, growth potential, and the potential for a successful exit
(e.g., IPO or acquisition).
 Market demand: The popularity of the crowdfunding campaign
and the level of investor interest may also influence individual
investment decisions. If a campaign has a lot of support, investors
may be more likely to invest, believing that others have done their
due diligence and deemed the investment a good opportunity.
 Market demand: The popularity of the crowdfunding campaign
and the level of investor interest may also influence individual
investment decisions. If a campaign has a lot of support, investors
may be more likely to invest, believing that others have done their
due diligence and deemed the investment a good opportunity.
 Personal connections: Some investors may choose to invest
in crowdfunding campaigns based on personal connections, such
as knowing the founders or having a connection to the industry.
 Reputation of the platform: Investors may also consider the
reputation of the crowdfunding platform. A platform with a good
track record of successful campaigns and satisfied investors may
inspire more confidence and encourage investors to invest.
 Information provided: Investors may base their investment
decisions on the information provided in the crowdfunding
campaign, such as the company's business plan, financial
statements, and marketing materials. Investors may also conduct
 their own research and due diligence to verify the information
provided.
 Social or environmental impact: Some investors may
choose to invest in companies that align with their values, such as
those that have a positive social or environmental impact. These
investors may prioritize companies that have a strong mission
statement and values that resonate with them.
 Investor Knowledge: An individual's knowledge and
experience in investing can influence their decision to invest in
crowdfunding. Investors who have more knowledge about the
investment opportunity, the platform, and the risks involved may be
more likely to invest in crowdfunding.
Overall, individual investment decisions in investment-based
crowdfunding are influenced by a range of factors, including risk
tolerance, return on investment, market demand, personal connections,
reputation of the platform, information provided, and social or
environmental impact.
 Assignment-3
Explain raymond cattell's personality factory
analysis theory
The ways of thinking, feeling, and behaving differ from person to person;
this is known as personality. Once the personality arises within an
individual, it remains constant throughout the life of that individual. The
word "personality" is derived from the Latin word "persona," which refers
to a mask used by an actor to portray several roles or to conceal their
actual identity. The main features of personality are consistency, which
means that the personality of an individual remains the same in a variety
of situations, affects behaviors and actions, which means that personality
controls our movement in the current environment and motivates us to
act in a particular manner in a specific situation, and multiple expressions,
which means that the personality of an individual can be understood in
the way of thinking, feeling, and interacting with others. Raymond Cattell’s
Personality Theory is based on several traits. According to Cattell
personality was rigidly experimental based on behavioral follow-ups and
the huge amount of data. His main area of study was to understand the
personality of the individual and how he/she will behave in a particular
situation. Raymond Cattell used the psychometric research method and
factor analysis methods for the development of his Theory of Personality.

Personality Theory

In the field of psychology, Raymond Cattell has many contributions but

he is most famous for his personality theory. Cattell to the study of
personality uses countable data rather than observations. He studied
personality by applying the factor analysis method. He divided the data
into 3 types to get a huge and proper method of sampling. The three
methods are:
 Life Data (L) - Data on the behavior of individuals and way of
behaving which includes marital conditions, interaction with others,
and many more.
 Experimental Data (D) - Recorded data of an individual's behavior
that how that individual reacted in a particular situation.
 Questionnaire Data (Q) - Data of answers of the individuals to
some questions about behavior and feeling which is not
understandable from observing behavior.
The main aim of Raymond Cattell’s theory of personality was the basic
categorization of the characteristics of personality.
The 16 Main Characteristics of Personality Theory

Raymond Cattell’s personality theory discussed 16 features of personality

that each and every individual consists of varying personalities.
 Warm
 Intellect
 Emotion Regulation
 Assertiveness
 Energy
 Consciousness of rule
 Standards regarding delicacy
 Responsiveness
 Abstraction
 Surveillance
 Privacy
 Anxiety
 Fear of upheavals
 Self-sufficiency
 Perfection
 Tenacity
From the 16 features of personality, 16 Personality strand surveys
arrived. It is a test that is adopted by psychologists, individuals, and health
institutes to analyze a patient. In this exam, the individuals will be asked
about some situations and their reactions to those particular situations.
Cattell’s 16 main characteristics of personality helped in the development
of the ‘big five’ features later. The five big factors are:
 Open-Mindedness
 Dutifulness
 Forwardness
 Cordialness
 Weirdness
Everyone has the above personality characteristics to some degree and
through that, they react to different situations in different ways. Nowadays
the big five tests of personality are more in use than the 16 personality
characteristics questionnaire.

Uses for the 16 Factors

The 16 Personality Factors (16PF) has a variety of uses, including:

 Career development: The assessment can provide insights that

help people determine which careers suit their talents and
interests.
 Industrial and organizational settings: The questionnaire is
sometimes used to evaluate job candidates to determine if they
are a good fit for particular roles.
 Personality assessment: The questionnaire can be useful for
better understanding different aspects of personality.
 Research: The 16 factor questionnaire is also used as a research
tool when investigating different aspects of personality and
behavior.

Fluid and Crystallized Intelligence

In addition to Raymond Cattell’s contribution to the theory of personality

which is in use nowadays also contributed to the distinction between fluid
and crystallized intelligence. Cattell introduced these two concepts in
1963.
The fast-decision-making ability of an individual and reasoning ability is
known as fluid intelligence. The presence of this type of intelligence in an
individual helps him/her in solving problems easily. These individuals are
also known as street smart.
Applying the gained skills and knowledge in any situation is known as
crystallized intelligence. Individuals with this type of intelligence are
known as book smart. These two types of intelligence are independent
but are connected to one another.