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behavioral finance

A theory stating that there are important psychological and behavioral variables involved in investing in the stock market that provide opportunities for smart investors to profit. For example, when a certain stock or sector becomes "hot" and prices increase substantially without a change in the company's fundamentals, behavioral finance theorists would attribute this to mass psychology. They therefore might short the stock in the long term, believing that eventually the psychological bubble will burst and they will profit.

Related information about behavioral finance:
  1. Behavioral economics - Wikipedia, the free encyclopedia
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  2. Behavioral Finance: Introduction | Investopedia
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  3. Behavioral Finance Definition | Investopedia
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  4. The Journal of Behavioral Finance
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  5. Behavioral Finance - BEAR - University of Florida
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  6. Behavioural Finance
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  7. Center for Behavioral Finance | Allianz Global Investors
    The Allianz Global Investors Center for Behavioral Finance puts academic theory into action, turning behavioral insights into actionable ideas and practical tools ...
     
  8. Behavioral Finance News - Bloomberg
    Breaking news about Behavioral Finance. Find the latest articles, videos, photos and blogs about Behavioral Finance.