Investigating the Nature of Retail Investor Activity
Utredning om retail investerare och dess handelsmönster
We study the nature of retail investor activity and how this diﬀers when looking at pe-riods in connection with quarterly reports and when looking at a special period on the market like Covid-19. Further, we investigate how this diﬀers between S&P500 stocks and meme stocks. We ﬁnd that retail order imbalances can predict positive future returns for S&P500 stocks and ﬁnd suggestive evidence that this doesn’t diﬀer signiﬁcantly for periods in connection with reports. We ﬁnd that this doesn’t diﬀer signiﬁcantly during the initial impact of Covid-19. We do however ﬁnd evidence that retail order imbal-ances predict negative returns for meme stocks, contrary to the behavior exhibited in the S&P500 stocks and in previous literature.