Determining the factors that influence investors` decisions to buy or sell stocks on the Macedonian stock market
Determining the factors that influence investors` decisions to buy or sell stocks on the Macedonian stock market

Summary/Abstract: During the period 2005 – 2009, the Macedonian Stock Exchange (MSE) witnessed its first bull and bear market in its short history. The study aims at identifying the most and the least influencing factors on the MSE small investor behavior. Convenience sample survey was conducted on individual investors in the recession period to discover the influence of economic indicators on the decision to buy or sell stocks on the MSE during the recession period. The findings are that investors are not completely rational as perceived by traditional finance theories. As the most affecting factor considered by the participants is “Neutral information”. Even more, the investment decision process is driven by such factors as: "Reputation of the company", "Acceptable stock price", and “Accounting information” is identified as the second most influencing category for the Macedonian equity investor, which was an unexpected result. The structure and relative weights of the chosen categories reflect on the average, which is a still unsophisticated and immature profile of the Macedonian investor.

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