02701cam a22004697a 4500 14141655 20250606222039.9 cr ||||||||||| 051015s2005 mau sb 000 0 eng 14141655 7 cbc orignew 4 ncip 20 y-gencompf undetermined NBER se20 2005-10-15 webcat se20 2005-10-15 se20 2005-10-15 LCAP batch update 2025-06-01-04:00: LCAPM-989 2005620015 DLC DLC HB1 Guiso, Luigi. Trusting the stock market [electronic resource] / Luigi Guiso, Paola Sapienza, Luigi Zingales. Cambridge, MA : National Bureau of Economic Research, c2005. text txt rdacontent computer c rdamedia computer disc cd rdacarrier NBER working paper series ; working paper 11648 Title from PDF file as viewed on 10/15/2005. Includes bibliographical references. Unrestricted online access "We provide a new explanation to the limited stock market participation puzzle. In deciding whether to buy stocks, investors factor in the risk of being cheated. The perception of this risk is a function not only of the objective characteristics of the stock, but also of the subjective characteristics of the investor. Less trusting individuals are less likely to buy stock and, conditional on buying stock, they will buy less. The calibration of the model shows that this problem is sufficiently severe to account for the lack of participation of some of the richest investors in the United States as well as for differences in the rate of participation across countries. We also find evidence consistent with these propositions in Dutch and Italian micro data, as well as in cross country data"--National Bureau of Economic Research web site. Also available in print. Mode of access: World Wide Web. System requirements: Adobe Acrobat Reader. Investments Psychological aspects. Stocks Psychological aspects Italy. Stocks Psychological aspects Netherlands. Stocks Psychological aspects United States. Sapienza, Paola. Zingales, Luigi. National Bureau of Economic Research. Working paper series (National Bureau of Economic Research : Online) ; working paper no. 11648. gdcebookspublic 2005620015 https://hdl.loc.gov/loc.gdc/gdcebookspublic.2005620015 http://papers.nber.org/papers/W11648 gdc/scd