الفهرس 
Chapter One Introduction and BackgroundOnly 14 pages are availabe for public view
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Abstract
The disposition effect describes investors’ common tendency of quitting a winning investment too soon and holding on to losing investments too long. The study tests for the presence of the disposition effect in the Egyptian stock market using daily account-level data of 405 Egyptian individual investors from January 2005 to December 2009 and reports that 84% of investors exhibit a positive disposition effect. The study also examines the effect of investor characteristics such as age, gender, experience, financial wealth and diversification on the disposition effect. Only experience and diversification are found to significantly reduce the disposition bias. In addition, the researcher shows that with respect to losses the behavior of the disposition investors differs from the behavior of non-disposition investors; the disposition investors tend to first: postpone realizing their losses and second: divide these losses over a large number of sales as the disposition theory predicts. However, when considering gains, the behavior becomes indistinguishable since both investor groups tend to sell their winners with the same readiness.