Falling Prey to Scams : The Perils of Emotional Decision-Making in the Indian Stock Market - Retail Investor's Perspective

In the case study, Mr. Sharma is a retail investor who has been investing in the Indian stock market for the past 10 years. Recently, he has been making emotional investment decisions and has fallen victim to a stock market scam.Scams in the Indian stock market can also be a concern for investors. Some common types of stock market scams in India include pump and dump schemes, price bubbling, insider trading, and fraudulent initial public offerings (IPOs). In a pump and dump scheme, a group of individuals or entities manipulate the price of a stock by artificially inflating demand for it through deceptive marketing tactics. Insider trading occurs when an individual with inside information about a company trades the company's stock based on that information, which is not available to the general public. Fraudulent IPOs involve a company issuing false or misleading information in order to sell its stock to unsuspecting investors.The case study of Mr. Sharma's emotional decision-making and experience with a stock market scam in India would fall under the category of financial economics, as it deals with the financial decisions and risks faced by an individual investor. It would also be classified under financial institutions and services, as it relates to the stock market and investing. The case study touches on topics such as portfolio choice, asset pricing, and market efficiency, which were all relevant to the field of financial economics. It also relates to insider trading and event studies, which were relevant to the study of market efficiency