Got a tricky question? Receive an answer from students like you! Try us!

Behavioural Finance - Essay Example

Only on StudentShare
Pages 6 (1506 words)


Behavioural finance has become one of the disciplines of great interest to investment firms, wealth management professionals and those interested in the stock market performance. Behavioural Finance is commonly understood as the application of psychological aspects of investors to financial planning and investment decision making…

Extract of sample
Behavioural Finance

Human behaviour and personal investment decision making can influence the trading results of a stock market and therefore, it is relevant to discuss the role of behavioural finance in the investment decisions at stock market. With this background, this paper attempts to discuss the influence of behavioural finance on the stock market performance in general and on the market bubbles and crashes in particular. The essay takes a descriptive approach wherein the present literature on these issues is mainly covered and an attempt is made to incorporate the relevant theories of behavioural finance.
Behavioural finance is one of the fast developing areas in the field of financial literature. This field of knowledge has developed a number of theories and theoretical models to explain the behavioural aspects of investment decision making. Most of the theories and models have been developed by borrowing insights from other branches such as psychology, sociology, and other behavioural sciences to analyze the behavioural aspects of investors and its influence on stock market performance. A good number of studies have been undertaken across the world to evolve behavioural theories and models so as to explain the association between the investor psychology and stock market performance. ...
Download paper
Not exactly what you need?

Related Essays

Essay on Behavioural Finance
All the terms are part of the business strategy which is actually and play a decisive role in constructing marketing tactics (Stigler, 1957). The classical economists had always talked about the business tactics. Idea of growth and competitor business strategy is part of their explanation. Here are some who described economics and behavioral finance in all different perspective: Among major terminologies of economics, the classical economists have given much importance to the term “Competition”. Competition is something that surrounds the basic business environment, in which there are…
8 pages (2008 words)
Business Essay on Behavioural Finance
Tapping telephone calls, monitoring computer and internet usage, and screening e-mails are some of the common employee surveillance practices. This paper will critically discuss the influence of workplace surveillance on managing people at work from the perspectives of both employers and employees. The paper will particularly focus on three relevant issues such as performance management, employee privacy, and use of information technology. Performance management Productive performance management is the ultimate goal of workplace surveillance programs. In order to effectively manage workplace…
7 pages (1757 words)
Behavioural Finance final
Different ways of reforms of financial crisis have been developed. Therefore, role of public policy will be discussed through some relevant economic theories developed by the eminent economists. These are Modern Momentary Theory, Moslers’s Law and Reverse Recardian Equivalence. These theories will be applied to identify the best possible ways in light of public sector to address financial crisis. Recommendations from these theories will be analysed in the light of endogenous money theory. Relation of economic crisis with public sector Economic crisis is worst case scenario of an economy…
5 pages (1255 words)
Behavioural Economics: The New Era
Behavioural Economics: The New Era …
7 pages (1757 words)