Recent studies suggest that individual investors may have private information and their trading can be informative. Consistent with this observation, we find that stocks that are more heavily traded by individual investors have higher liquidity, after controlling for other determinants of...

Motivated by recent evidence of informed trading by individual investors (Kaniel, Liu, Saar and Titman, 2012; Kelley and Tetlock, 2012), we posit that individual investor trading enhances firm performance. Consistent with the conjecture, we find that individual investor trading positively impacts...

This study shows that weather-based indicators of mood impact perceptions of mispricing and trading decisions of institutional investors. Using survey and disaggregated trade data, we show that relatively cloudier days increase perceived overpricing in individual stocks and the Dow Jones...