Analysis of Investor’s Perception Regarding stock Exchange Transactions: A review paper

Abstract

A group of people known as investors and a group of corporations known as sellers engage in the buying and selling of shares, which represent ownership in a company, in the stock market. Included in this category are securities that are listed on a public stock exchange and are regulated by the government. The nation where a corporation is based determines how its shares or stock market are classified. One such Indonesian firm that is listed on the Indonesia Stock Exchange is Gudang Garam.. The stock market presents a compelling opportunity for investors, having experienced significant growth over the years. Its increasing prominence is largely due to its connection with the future of financial assets. Despite the potential for significant profits, many investors remain apprehensive about investing in the stock market today. The volatility in the stock market can be a contributing factor. This study examined the perceptions of investors regarding the stock market across various geographical regions. This theoretical research paper examines the factors influencing investor perception in relation to stock exchange transactions. This analysis explores the impact of multiple elements, including market volatility, risk tolerance, information asymmetry, and psychological biases, on the decision-making processes of investors within the realm of stock trading. The research seeks to uncover trends in investor behaviour, highlighting the significance of market sentiment, media impact, and economic indicators in influencing investment decisions. This paper examines established theories and models of financial behaviour, offering a detailed analysis of how investors manage the intricacies of the stock market. It emphasises the influence of cognitive and emotional factors on trading results. This research enhances the comprehension of investor psychology, providing valuable insights for market analysts, policymakers, and financial institutions to formulate strategies aimed at improving market efficiency and bolstering investor confidence.