| Summary: | 碩士 === 國立宜蘭大學 === 應用經濟與管理學系經營管理碩士班 === 107 === The stock market in Taiwan is comprised mainly of individual investors. When buying stocks, such investors usually do not rely on their own stock selection indicators and follow recommendations from their friends or family or professional analysts instead. They may also look over financial reports, which are in fact comprised of out-dated information. As a result, investors may have made the investment but cannot see a rise in stock prices because it has already lost its momentum. Increase in stock prices is due to a combination of price and volume, even if the increase arises from purchases made by foreign investors or because of institutional manipulation. Therefore, instead of hoping that stock prices will increase in the future, we should make the most to conduct trading during the period when the stocks are on the rise. This study investigates stock returns subsequent to a limit up from a technical analysis perspective and makes references to data regarding stocks reaching continuous limit up and gapping limit up. Samples are taken from all listed company information three years after the limit of daily price fluctuation had been relaxed to 10%. By conducting analysis with the regression model, results show abnormal returns on the day subsequent to a limit up as well as higher returns from stocks reaching continuous limit up and gapping limit up.
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