Question

Why retail and institutional investors may become too excited about glamour (or growth) stocks versus value...

Why retail and institutional investors may become too excited about glamour (or growth) stocks versus value stocks? Suggest reasons

Homework Answers

Answer #1

The retail and institutional investors becomes excited with the growth stock as they want huge and quick return returrn as soon as possible. They like a quich upside from their buying price. Retail investors invests its hard earned money in stock so they do not want to lose at all. Also, it is most riskier one for retail investors. They do want to be invested in stock market for longer period and especially when they get an upside they just sell and exit from the investment.

Most of the institutional investor invests in stock market to malke a quick gain. We all the funds is not needed at the single point of time so the left over fund which is not in immediate need gets invested in the stock market. They would like to exit from the market seeing a higher return.That;s why both these investors look for growth stock instead value stocks.  

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