BISHOP

PPT An Introduction to Behavioral Finance PowerPoint Presentation from www.slideserve.com Behavioral Finance Key Concepts Introduction to Behavioral Finance Behavioral finance is a relatively new field of study that seeks to understand how human behavior influences the decisions of investors and financial advisors. It combines traditional financial theory with psychology and cognitive science to better understand why people make financial decisions. This field of study is relatively new, but it has already had a major impact on the way financial markets are understood and managed. Behavioral Finance Concepts At the heart of behavioral finance are the concepts of investor psychology, emotions, biases, and heuristics. These concepts help to explain why investors may make irrational decisions that are not in their own best interest. For example, investors may be influenced by their emotions when making investment decisions, leading them to make decisions that are not based on sound fi...