Investor Sentiment Explanation Essay Example | Topics and Well Written Essays - 1250 words

Investor Sentiment Explanation - Essay Example Closed-end funds can serve as a perfect illustration for limitations of many theoretical assumptions. Concerns of many researchers from US and UK trying to explain closed-end funds, which differ from open-end funds with a fixed limited number of shares on the stock market, deserve serious attention. But before an explanation of closed-end fund phenomena from the behavioral perspective will be given, clear frames of the subject question should be defined. There are some differences and similarities between closed-end funds in the US and the UK. One of the most important differences is much greater participation of institutional investors in the UK market than in the US (Bleaney and Smith 2003, p. 19). Nevertheless the US and the UK markets are more similar than different, that is why we can extend results acquired from one market to another, but with some corrections made. Investor Sentiment Explanation Unlike economic theories trying to explain the closed-end fund puzzle with rational assumptions (e.g. tax liabilities), behavioral theories imply that there is some amount of irrationality on the market. It is called â€Å"noise trader sentiment† — the component of expectations about asset returns not warranted by fundamentals. Basic assumptions of investor sentiment explanations are as follows:some of the investors are not fully rational, and their demand for risky assets is affected by their beliefs or sentiments; arbitrage is risky and therefore limited. However, researchers advise not to fall into opposite extreme: â€Å"It is absolutely not true that introducing a degree of irrationality of some investors into models of financial markets eliminates all discipline and can explain everything†.

Stress Lab Report Example | Topics and Well Written Essays - 750 words

Stress - Lab Report Example Various risk factors are found to be associated with the job-related stress which may act independently or in amalgamation, including (Risk factors for work-related stress, n.d.)- A. Work Demands- As every individual possesses a limited capacity for work, exceeding these confines may generate job-related stress such as time pressure, getting insufficient time to accomplish tough tasks, greater mental tasks necessitating decision-making or requiring concentration. Monotonous work may generate stress due to unutilized skills or work that demands overtime or taking work home or erratic shift rosters disturbing personal life. B. Low levels of control- Poor control over the situation, lack of autonomy, needless inspection and burdened responsibilities with diminutive authority may generate stress. In some cases individual is also responsible for inadequately managing the work or not accomplishing the task on time due to poor control over the work may generate stress. C. Poor support from supervisors and co-workers- In certain cases the workers may not feel adequate transparency to talk to the supervisors regarding the work issues or the administration is unable to fix the issue may generate stress at work place. ... E. Poorly managed relationships- Co-workers may act as a support or a source of stress. Positive and negative relationship may generate conflict which could serve as an momentum or drive for betterment or it may generate strain. F. Low level of recognition and reward- Appreciation is a way of communication which is an expected of every person who is performing a task, this generates stimulus for diligence. On the contrary, no recognition of the work generates stress and frustration. G. Poorly managed change- Work condition may alter; poor management of uncertainties may generate stress. H. Organizational Justice- Evenhandedness is highly desirable in the organization, this not only generates healthy working environment but also protect the precipitation of stress in individuals. Organizational biases, bullying and harassment may culminate into generation of stress. To promote growth and development of the organization it is essential that both employee and employer work in co-ordinat ion to minimize stress at work-place. The employee must take the responsibility to be physically and mentally well, should avoid snags and negative approaches and by establishing better communication with the management and co-workers (Stress at work: Tips to Reduce and Mange Job and Workplace Stress, n.d.). The employer on the other hand must provide the employees with maximum control over their jobs, maintaining clear communication about important facts, by talking about the goals of the company, customer demands, company's efforts and directives, the supervisors must be able to bring out the best in sub-ordinates, encouraging open discussions and free talks, providing the employees with the freedom to design their job in a