Behavioral finance

Behavioral finance is a field of study that analyzes investor behavior as a result of psychological traits. It does not assume that investors necessarily behave rationally.

Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Behavioral finance. A field of study that analyzes investor behavior as a result of psychological traits. It does not assume that investors necessarily behave rationally.

Related concepts

• Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.

Related lectures

• Introduction to Financial Management.