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Disadvantages small investors face in the stock market

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You work for a large investment firm and recently wrote a position article on your firm's approach to investing for the small investor, titled Investing is for the Little Guy. The article now appears on your company's Web site. It has, interestingly enough, generated e-mail responses from potential clients, and your firm is asking you to address some of their questions for a Frequently Asked Questions (FAQ) segment that will be posted to the Web site soon.

Specifically, some of the respondents have compared investing in the stock market as a no-win situation and only the institutional investors can win. These respondents would like a response that further clarifies your firm's position regarding risk in light of these types of statements.

Please list references APA format.

* Research stock market investments using your text, course materials, and Web resources.
o What are 2-3 disadvantages small investors face when investing in the stock market?
o Are there any ways to prevent the small investors from facing these issues?
o What advantages are presented to these small investors?

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Solution Summary

You work for a large investment firm and recently wrote a position article on your firm's approach to investing for the small investor, titled Investing is for the Little Guy. The article now appears on your company's Web site. It has, interestingly enough, generated e-mail responses from potential clients, and your firm is asking you to address some of their questions for a Frequently Asked Questions (FAQ) segment that will be posted to the Web site soon.

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One of the major disadvantage for small investor is lack of appropriate and timely information about the sectors or stocks that he has invested in. It is often seen that investment firms do not focus on small investors and cater to the requests of large clients only and thus, smaller investors are deprived of ...

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Sandeep Bardia, MBA
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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