“…Retail investors are characterized as lacking sophistication: they have at best a cursory understanding of investing and of disclosures that firms and financial intermediaries offer, and they make mistakes during financial calculations (Calvet, Campbell, and Sodini, 2009;van Rooij, Lusardi, and Alessie, 2011). Sophisticated investors have the time and resources to analyze disclosures, and they do not make mistakes during financial calculations (Cascino, Clatworthy, García Osma, Gassen, Imam, and Jeanjean, 2014;Calvet et al, 2009;Nelson and Tayler, 2007). Often, institutional investors (e.g., pension funds, mutual funds, hedge funds) are considered sophisticated, since they employ individuals educated in finance and accounting, and focus their activities on investments and disclosures.…”