Can Retail Investors Drive up Stock Prices?
Year: 2025
Type: article
Abstract: : This study finds that return on the NYSE largest-cap portfolio significantly increases following the shock to the percentage change in NYSE odd lot purchase volume. Based on the analysis of monthly data from 1970M2 to 2012M12, results reveal a causal linkage between return on the NYSE largest-cap portfolio and the percentage change in NYSE odd lot purchase volume. Findings suggest that purchase trades placed by retail investors, on average, help drive up future prices of large-cap stocks. Keywords: Odd Lot Purchase, Retail Investor, Trading Activity, Stock Market Return JEL Classification Number: G12, G14
Authors: Vichet Sum, Leslie West, Mohammad Ali
Institution: University of Maryland Eastern Shore
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W6930594125
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