Investor behavior in stock markets of pakistan

This research is designed to investigate the behavior of stock market investors in Pakistan. The study seeks the opinions of private and institutional investors about their investment decisions. Mr. Muhammad Fahid Saleem is MS scholar in COMSATS Institute of Information Technology (Lahore) and principal investigator of this research for completion of his MS final Dissertation.

*1) Choose an option best describe your investment strategy

I invested mostly in companies with uncertain, but higher expected returns I invested mostly in companies with stable, but lower expected returns

*2) Choose an option best describe your investment strategy

I invested mostly in large size companies I invested largely in small size companies

*3) Choose an option best describe your investment strategy

I invested largely in domestic companies I invested largely in foreign companies

*4) Rate the following factors, you think, is most important for the market trend?
(1 Least Important 5 Most Important)
1 2 3 4 5

The news stories in media The forecasts of analysts Over confidence among investors in the stock market. Earning & Profitability of the listed companies. Individual investors following the majority Economic condition of the country. Political scenario of the country

Interest rates

*5) When you need to reach an investment decision, how important to you are the

following information gathering processes? Choose 1 for information least important to you, and 5 for information that is most important to you. In this manner, rate each behavior from 1 to 5.
1 2 3 4 5

Discussion and exchange of opinions with colleague Opinion of analysts Investment decision of other market participants Opinions of leader in the same industry Information from the Media

*6) Rate the following statements. Choose 1 for strongly disagree and 5 for strongly
agree.
1 2 3 4 5

In case of loss positions in my portfolio I generally wait for a price rebound instead of selling those securities I prefer to take profits instead of cutting losses when I am confronted with unexpected liquidity demands In making investment decisions I most of the time act as risk averse (avoids risk) investor. Market will be back to its former level before crash in couple of years My performance as compared to other fund managers/Investors was better The majority of economic news is not surprising for me. I trade more than other investors If a friend purchased a stock that later did badly, I think of

this as a case of bad luck

*7) Imagine that you are richer by Rs 200,000 than you are today, and that you face a
choice between options: receive Rs 50,000 or A 50% chance to win Rs 100,000 and a 50% chance to win nothing.

*8) Now imagine that you are richer by Rs 300,000 than you are today, and that you are
compelled to choose one of two options: lose Rs 50,000 a 50% chance to lose Rs 100,000 and a 50% chance to lose nothing

*9) Investor A owns a block of a stock, which he originally bought at Rs 100 per share.

Investor B owns a block of the same stock for which she paid Rs 200 per share. The value of the stock was Rs160 per share yesterday, and today it dropped to Rs 150 per share. Who is more upset?

Investor A Investor B Both Equally

*10) Suppose you have two stocks A & B bought at Rs. 50 each. Stock A sold at Rs 100
experiencing a gain of Rs. 50. Stock B reached a high of Rs 150 but you sold at Rs 100 experiencing a gain of Rs. 50. Which is more favorable? Sale of stock A Sale of stock B Both equally Can not say

*11) Gender
Male Female

*12) Age
Under 25 26-35 36-50 51-65 Over 65 Years

*13) Types of Qualification

Finance Related Non Finance No Education

*14) Years of Experience

Up to 5 years 5-10 10-15 Above 15

*15) Investor Type

Individual Institutional

*16) You invest in

Islamabad Stock Exchange Lahore Stock Exchange Karachi Stock Exchange