Abstract: Investor behavior plays a crucial role in stock market dynamics, influencing trading patterns, market volatility, and asset pricing. This study examines the key psychological, economic, and social factors affecting investor decision-making in the stock market. Using a combination of survey data and empirical analysis, the research explores how cognitive biases (such as overconfidence, herd mentality, and loss aversion), financial literacy, market information, and macroeconomic conditions shape investment choices. The findings reveal that emotional biases and social influences significantly impact trading behaviour, often leading to suboptimal decisions. Additionally, the study highlights the role of demographic factors—such as age, income, and experience—in determining risk tolerance and investment strategies. By identifying these behavioal drivers, this research provides valuable insights for financial advisors, policymakers, and market regulators seeking to enhance investor education and market stability. The study contributes to behavioral finance literature by bridging the gap between theoretical models and real-world investment behaviour.

Keywords: Investment Decision Making, Stock Market, Risk Perception, Behavioral Finance, Market Volatility.

| DOI: 10.17148/IARJSET.2025.12566