Factors forming irrational Lithuanian individual investors’ behaviour

Abstract

The paper aims to identify factors forming irrational individual investors’ behaviour in Lithuanian stock market. For this purpose and on the basis of the results of the scientific literature research, factors forming irrational behaviour of individual investors were identified and used for the preparation of questionnaire for individual investors, actively trading in the Lithuanian stock market. Also a complex research methodology for identifying irrational investor behaviour forming factors and investigating their impact on individual investors’ decisions made in the stock market was developed. The study showed a logical relationship between the factors forming irrational behaviour of individual investors and decisions made in the stock market.