Researchers suggest that investors are more influenced by news and stock market tips during periods of rising and falling prices than during periods of relative stability. This is consistent with social psychological research concerning

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During periods of rising and falling prices, investors are more likely to be influenced by others due to uncertainty and volatility, which aligns with conformity (changing behavior to match others) and social comparison processes (evaluating one's opinions and abilities by comparing oneself to others).

Researchers Suggest That Investors Are More Influenced by News and Stock