Overview
Investor trust is a cornerstone of financial markets, influencing how individuals and institutions engage with investments. When trust is high, investors are more likely to participate actively, leading to market stability and growth. Conversely, a lack of trust can result in market volatility and r...
Key Terms
Example: A market with high integrity ensures fair trading practices.
Example: Companies that publish clear financial reports demonstrate transparency.
Example: Fear can lead to panic selling among investors.
Example: High volatility can lead to significant price swings in stocks.
Example: Investors use diversification as a risk management strategy.
Example: Behavioral finance explains why investors may hold onto losing stocks.
Related Topics
Key Concepts
Market IntegrityTransparencyInvestor BehaviorMarket Volatility