Decision theory applied to the stock market

It is not uncommon to hear advice from others saying “Go invest your money, leaving it in the bank is useless” or “I regretted not investing earlier on when I was younger”. In this paper, I aim to defend the idea that it is irrational to not invest in the stock markets, or any alternative financial...

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Main Author: Low, Seng Hoom
Other Authors: Teru Miyake
Format: Final Year Project
Language:English
Published: Nanyang Technological University 2022
Subjects:
Online Access:https://hdl.handle.net/10356/156167
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Institution: Nanyang Technological University
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spelling sg-ntu-dr.10356-1561672023-03-11T20:11:13Z Decision theory applied to the stock market Low, Seng Hoom Teru Miyake School of Humanities TMiyake@ntu.edu.sg Humanities::Philosophy It is not uncommon to hear advice from others saying “Go invest your money, leaving it in the bank is useless” or “I regretted not investing earlier on when I was younger”. In this paper, I aim to defend the idea that it is irrational to not invest in the stock markets, or any alternative financial derivative or investment. In the initial section, I will set out to identify and explain the related concepts and theories of money, by looking at the Ontology of Money as well as cryptocurrencies and Non-Fungible Tokens. I will then offer an economic justification upon exploring the main criticisms and advocates of profit. Thereafter, I will attempt to give an outline of the United States’ financial market structure, explore the act of ‘short selling’ and the conflict of interest of the various parties involved. With the various related financial concepts and theories in place, I will then apply decision theory to explore various scenarios in recent market developments including the short selling phenomena as well as the game theory outlook by individual investors. Overall, I conclude that it is rational to invest in the markets as people will be better off doing so than not. Bachelor of Arts in Philosophy 2022-04-06T02:35:46Z 2022-04-06T02:35:46Z 2022 Final Year Project (FYP) Low, S. H. (2022). Decision theory applied to the stock market. Final Year Project (FYP), Nanyang Technological University, Singapore. https://hdl.handle.net/10356/156167 https://hdl.handle.net/10356/156167 en application/pdf Nanyang Technological University
institution Nanyang Technological University
building NTU Library
continent Asia
country Singapore
Singapore
content_provider NTU Library
collection DR-NTU
language English
topic Humanities::Philosophy
spellingShingle Humanities::Philosophy
Low, Seng Hoom
Decision theory applied to the stock market
description It is not uncommon to hear advice from others saying “Go invest your money, leaving it in the bank is useless” or “I regretted not investing earlier on when I was younger”. In this paper, I aim to defend the idea that it is irrational to not invest in the stock markets, or any alternative financial derivative or investment. In the initial section, I will set out to identify and explain the related concepts and theories of money, by looking at the Ontology of Money as well as cryptocurrencies and Non-Fungible Tokens. I will then offer an economic justification upon exploring the main criticisms and advocates of profit. Thereafter, I will attempt to give an outline of the United States’ financial market structure, explore the act of ‘short selling’ and the conflict of interest of the various parties involved. With the various related financial concepts and theories in place, I will then apply decision theory to explore various scenarios in recent market developments including the short selling phenomena as well as the game theory outlook by individual investors. Overall, I conclude that it is rational to invest in the markets as people will be better off doing so than not.
author2 Teru Miyake
author_facet Teru Miyake
Low, Seng Hoom
format Final Year Project
author Low, Seng Hoom
author_sort Low, Seng Hoom
title Decision theory applied to the stock market
title_short Decision theory applied to the stock market
title_full Decision theory applied to the stock market
title_fullStr Decision theory applied to the stock market
title_full_unstemmed Decision theory applied to the stock market
title_sort decision theory applied to the stock market
publisher Nanyang Technological University
publishDate 2022
url https://hdl.handle.net/10356/156167
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