5. Communicating to clients Flashcards
1
Q
Why do we say that investors are “Net-buyers” of stocks
A
Focus too munch on attention-grabbing stocks that hurt performance over time
2
Q
What is the rank effect
A
Individuals are most likely to sell the extreme winning and extreme losing positions in their portfolio (linked to prospect theory)
+they usually sell winners and keep losers
3
Q
What is payment for orderflow ?
A
Fee paid indirectly to the market maker indireclty to have your order executed
4
Q
Is it important to modify the way we frame information
A
Yes. It helps monitor some biases.
