Does individual investor

trading impact firm

valuation?

Group No: 04
 Group Details
Group 04 (Section: B)
BBA 26th Batch
Department of Finance
Faculty of Business Studies
University of Dhaka

Name ID No Remarks
Snigda Biswas 26-058  
Mushfika Tasnim Nusrat 26-065  
Monjuara Parvin Monalisha 26-136  
Naurin Jahan 26-212  
Neha Akther Mehak 26-169  
Naurin Jahan
ID: 26-212
 The Key Implications of The Research

Market Efficiency and Market Regulation Investment Strategies

Rationality and Policy

Investor Decision- Dispelling of Typical Information

Making Market Notion Asymmetry and
Spread
ID: 26-212
 Market Efficiency and Market Regulation and
Rationality Policy
Individual investors’ trade based on their Individual investors foster informed trading
private information or insights can lead to and firm valuation
valuable information into stock prices Regulators and policymakers might
Individual investor trading can contribute consider the role of individual investors in
to improving stock price informativeness market dynamics

Investment Strategies

Individual investors contribute positively to

stock price informativeness and firm
valuation.
Individual investors’ informed trading
facilitates to develop investment strategies
ID: 26-212
 Investor Decision-
Making
Individual investors’ informed trading is
reflected in the Market to Book Value ratio
(M/B ratio)
Investors can make effective decisions
conducting individual investor research
Dispelling of Typical
Market Notion
Valuable private information possession
can contribute to price discovery and assess
the value of companies.
Informed individual investor trading can
help dispel the market notion

Information Asymmetry and

Spread
Individual investors’ trade can lead to a
reduction in the bid-ask spread making the
market more liquid
Liquid market can help to reduce the
information asymmetry
ID: 26-212