Investment Traps Exposed helps investors and investment practitioners increase their awareness about the external and internal traps that they or their clients can encounter. Baker and Puttonen not only examine common investing mistakes, behavioral biases, and investment traps that can ensnare...

Are you an investor facing an obstacle you dont know how to overcome? Are you ready to invest, but not sure how to reduce your risks? There are two important things you must do to be a savvy investor: make good investment decisions and avoid costly mistakes. As important as good investments are,...

When you think about investing, what words come to mind? Overwhelming? Intimidating? Scary?Investors face a vast array of investment options vying for their business. They are aware that some of those providing these "opportunities" seek to take advantage of them. And although most investors...

Purpose: The purpose of this paper is to study how the target fund in mutual fund mergers performed compared to the acquiring funds had they not been merged but continued on their own as buy-and-hold portfolios. Design/methodology/approach: The authors develop a novel approach to examine...

Purpose – The paper aims to examine the effect of advertising on mutual fund cash flows in the Finnish fund market. Design/methodology/approach – The paper's unique data set allows the observation of the effects of monetary advertising spending and the choice of advertising media. Findings...

We compare the market values of executive stock option (ESO) trades with their Black & Scholes (1973) model values calculated following the major accounting standards, SFAS No. 123r and IFRS2. Our results show major underpricing compared to the traditional B&S method values. This should be...

When managers get to trade in options received as compensation, their trading prices reveal several aspects of subjective option pricing and risk preferences. Two subjective pricing models are fitted to show that executive stock option prices incorporate a subjective discount. It depends...