Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

The role of investor sentiment in stock market price fluctuations

Author(s): Kofi Owusu

Investor sentiment plays a crucial role in influencing stock market price fluctuations, often driving short-term movements that deviate from underlying fundamental values. This article explores the dynamics of investor sentiment, examining its impact on market psychology, trading behaviors, and overall market efficiency. By analyzing key factors that shape investor sentiment, such as media influence, economic indicators, and behavioral biases, this article provides insights into how sentiment-driven fluctuations can lead to market inefficiencies and opportunities for investors. Understanding the role of investor sentiment is essential for navigating volatile market conditions and making informed investment decisions

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