Small And Medium Investors To Study The Cognitive Biases Of The Regulatory Policy

In security market, if market feedback of supervision policy and expect of policy-makers are opposite, it will not only make the supervision goal of management level failed but also strike against the security market. One of important reasons is the Cognition bias of small-and-medium sized investors. The management level does not know more about the psychology and recognition of the security market.It is very meaningful for both policy-maker and small-and-medium sized investors. Furthermore, it lacks such both sides analysis in the field of security market regulation. The paper is to provide reference for policy-makers by effectively analyzing. The paper uses the latest research result and takes use of questionnaires to make practical research on cognition bias of small-and–medium sized investors. It gets first-hand materials by investigating aspects, such as the background, their characteristics of cognition bias, local investors'cognition bias, etc. In order to be more accurate, the paper has deep interview with three small-and-medium sized investors who knows more about the security market.The paper will apply the theory of cognition bias to discuss the behavior of small-and-medium sized investors in order to analyze the reasons of cognition bias mentioned above and provide methods andpolicy to solve the problems. The result of this paper will have great meanings on the regulation of small–and-medium investors in China's security market.