Behavioral Finance: What Everyone Needs to Know (R)

People often make financial decisions based on past events and lost value, rather than focusing on the present and future. This can lead to costly mistakes in the world of finance. Behavioral Finance: What Everyone Needs to KnowR provides an overview of common shortcuts and mistakes people make in managing their finances, including emotional biases and the influence of social factors. It also discusses how age, experience, and gender can affect risk tolerance and decision-making.

\n Format: Paperback / softback
\n Length: 256 pages
\n Publication date: 30 May 2019
\n Publisher: Oxford University Press Inc
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People often exhibit a tendency towards being both penny-wise and pound-foolish, often lamenting over spilled milk, despite being taught to avoid such behavior. This mindset involves prioritizing the present at the expense of the future and making decisions based on perceived lost value. In the realm of finance, these errors can be particularly costly, as they can lead to poor investment decisions, financial instability, and missed opportunities.

Behavioral Finance: What Everyone Needs to Know provides a comprehensive overview of common shortcuts and mistakes individuals make in managing their finances. It delves into the common cognitive biases or errors that occur when people gather, process, and interpret information. These biases encompass emotional factors and the influence of social factors, ranging from cultural norms to the behavior of one's peers. These effects can vary throughout an individual's life, influenced by factors such as age, experience, and gender.

Addressing key questions such as how the financial crisis of 2007-2008 spurred understanding of human behavior, the role of market anomalies in relation to behavioral biases, the impact of overconfidence in financial decision-making, and how aging affects risk tolerance, this book offers valuable insights into the complex dynamics of financial behavior. By shedding light on these issues, Behavioral Finance: What Everyone Needs to Know empowers individuals with the knowledge and tools necessary to make informed financial decisions and navigate the challenges of the financial world with greater confidence and success.

\n Weight: 302g\n
Dimension: 139 x 209 x 20 (mm)\n
ISBN-13: 9780190868734\n \n