Behavioural finance
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