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Financial experts also take psychological effects into consideration when analysing the financial markets. For example, it is a fact that investors do not like to part with securities if it means that they will suffer a loss. This causes a bias in investor behaviour and divergence from the theory that investors react rationally and are in possession of all market information at all times.

Term-Nr.: 117

German: Behavioral Finance (149)

Source: Swiss Fund Guide 2010 m. e. E., 20.04.2010

Notice: The contents of this terminology collection Lawpedia® with a focus on business law (especially financial market law) have been researched with great care and compiled on the basis of an extensive flash card, training materials and literature. The various sources (as far as they could be found) can be found in the abbreviations and source references. References to other sources are welcome. Despite the care taken, the provider cannot accept any liability for the accuracy, completeness and topicality of the information provided. The information is of a general nature in particular and does not constitute legal advice in individual cases.

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