The Stock Market Vision

Now, standard finance is a main-stream finance in the kingdom of finance & securities research. Standard finance has argued that stock investors were rational, and invest by itself according to the principle of maximum efficiency. However, people could not explain the general"anomalies"in stock market with standard finance theory. In accordance with more and more research of domestic and external economist, emotions, mentalities and feelings are important factor in stock investment. Because of above-mentioned factors, investors all are not rational. In another words, investors do not always make rational decision. At the interference of environment and the influence of cognitive bias, the behavior of investors gets to be bias."Anomalies"come with the tide of fashion. This is the explanation about"anomalies"with the oncoming theory of behavioral finance.Investors are capable of correcting cognitive bias. With the developing of stock market and the improvement of the capability of investors, lots of cognitive bias have been corrected. The result of this behavior is that some old"anomalies"die down. Surely, some new"anomalies"arise on and on. The whole stock market is developing with the circulation of birth and death of"anomalies".Combining the traditional standard finance with the oncoming behavioral finance, I shall make a deep research about popular"anomalies"in Chinese stock market—"the phenomenon of jie fang road in Ningbo". I will try to find the background of the phenomenon and the method of distinguishing it. I hope to provide the beneficial support to avoid risks and to reinforce market supervision.This research is divided to six chapters.Chapter 1: Preface. Introduction to the"anomalies"in stock market and the significance of the study about"the phenomenon of jie fang road in Ningbo". Chapter 2: Expounding standard finance and behavioral finance to lay the foundation for the study about"anomalies".Chapter 3: Explanation for"anomalies"and introduction to some famous...