May 10, 2025
Science

According to Science, Your Financial Investing Style May Reflect Your Intelligence Level! (But How?)

  • July 10, 2024
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in the literature “IQ and stock market participation” A study called (IQ and Stock Market Participation) revealed some striking facts. IQ levels of individuals measured in early adulthood

in the literature “IQ and stock market participation” A study called (IQ and Stock Market Participation) revealed some striking facts.

IQ levels of individuals measured in early adulthood and later in life decisions to invest in the stock market It focuses on determining the relationship with.

Before we dive into the findings, let’s talk about the methodology.

Research conducted in Finland of 158,044 male participants performed with data.

Looking at the participants profile, their average income is 22,642 euros, 29.6% are married, 6.5% live together, 29.8% have children and 8.6% are unemployed. Finally, measured by education level, 21.6% have a basic education, and 42.6% have primary education. 18.8% were high school graduates 16.9% are university graduates The information is shared.

In the context of the investigation conducted by the Finnish Defence Forces The results of IQ tests, Variables such as the above-mentioned demographic variables, stock market participation and diversification (number of stocks and mutual funds) are taken into account.

So what do the findings show? IQ measured in early adulthood appears to significantly influence individuals’ decisions about stock market participation in later years.

In other words, there is no difference between intelligence levels and the choice to invest in the stock market. a strong relationship It turns out to be so.

So research shows that people with a high IQ more likely to invest in the stock market He says it is so.

This relationship discovered within the scope of the research, assets, income and other demographic factors of individuals It is controlled by.

The results obtained are consistent with the level of intelligence, even within the influence of the factors mentioned. choice to invest in the stock market It shows that it continues.

In addition, high IQ investors, They appear to be diversifying their portfolios more by holding more stocks and mutual funds.

This suggests that IQ not only influences stock market participation, but also It also impacts investment strategies shows.

Looking at the demographics of the sample, individuals with high IQs generally have higher educational attainment and higher incomes.

Researchers have shown that these factors also increase stock market participation, but the effect of IQ may also be independent of these factors. strong states that this is so.

There is also a difference between the IQ level and the net worth of investors. a positive relationship is available.

In other words, individuals with high IQ have higher net worth A factor that increases participation in the stock market It is added that.

In summary, this research highlights the importance of IQ in individuals’ financial decision-making processes and its impact on stock market participation. The role of IQ in financial behavior shows it clearly.

Finally, as with any scientific research, this study may have some limitations and, as with any research, this study can be generalized within its own sample. Let’s end our content by adding:

Source: SSRN

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