We discuss how small investors who dominate the market are most vulnerable to losses from stock market changes. They often lack the financial knowledge and access to insider information needed to make informed decisions, leading them to follow herd behavior - a strategy derived from the animal world where animals gather together and run in one direction as a collective defense against predators. This herd behavior is manifested in the securities markets through buying, selling, and trading patterns that can increase the volatility faced by the market.
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