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Arab Journal of Administration المجلة العربية للإدارة

Abstract

This research aims to analyze trader’s types and their behavior in the Saudi stock market. The study classifies traders to identify the structural component of the stock market and to test the significant of difference in their behavior and their reactions to the movement of stock prices. One Way ANOVA analysis used to demonstrate significant differences among the traders’ behavior according to price variability, facing loss and trust in specific stock. The results described that 60% of the total traders in the sample are investors ,while the percentage of speculators are 40% , this help to analyze and interpret the impact of this distribution relative on the share trading in the Saudi stock market. On the other hand, the results shown that there are significant differences among their behavior towards price rise or reduction, as well as their reactions towards facing loss. Also there are significant correlation between the types of traders and their reactions to the share prices movements. In addition, the results indicate to increase the ratio of traders who face loss. Since traders ratio that face loss is (86 %), while the ratio of traders that not face loss is (14 %). Meanwhile there is no significant difference between their behavior when they believe (trust) of stock and expect to achieve more of it.

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