| Summary: | Stock market is a place where investor can make profit through stock trading,
and many investor prefer to buy stocks over other financial instrument because it can
give significantly higher return at the expense of higher risk. Many phenomenons are
occuring within stock market that influence the movement of stock price, and one of
them is herding behavior, which usually viewed as making the stock market more
volatile and more risky.
Herding behavior is a phenomenon in which an investor is following the
decision made by other investors, and it can be caused by either irrational behavior
(panic or euphoria) or rational behavior (an investor take a similar action since he/she
thinks the other investors must know something that he does not). Researchers�
opinion on the effect of herding on stock market is also divided
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