This paper is published in Volume-7, Issue-6, 2021
Area
BBA IB
Author
Anuj Vijay Kale, Abhijeet Kashinath Takawale, Omkar Prakash Phadtare
Org/Univ
Sinhgad College of Commerce, Pune, Maharashtra, India
Pub. Date
22 November, 2021
Paper ID
V7I6-1190
Publisher
Keywords
Economics, Global Finance, Emotional Homo Sapiens, Behavioral Finance, Traditional Finance

Citationsacebook

IEEE
Anuj Vijay Kale, Abhijeet Kashinath Takawale, Omkar Prakash Phadtare. Difference between behavioral finance and traditional finance, International Journal of Advance Research, Ideas and Innovations in Technology, www.IJARIIT.com.

APA
Anuj Vijay Kale, Abhijeet Kashinath Takawale, Omkar Prakash Phadtare (2021). Difference between behavioral finance and traditional finance. International Journal of Advance Research, Ideas and Innovations in Technology, 7(6) www.IJARIIT.com.

MLA
Anuj Vijay Kale, Abhijeet Kashinath Takawale, Omkar Prakash Phadtare. "Difference between behavioral finance and traditional finance." International Journal of Advance Research, Ideas and Innovations in Technology 7.6 (2021). www.IJARIIT.com.

Abstract

Global financial markets are leveraged by many factors: The process of economic which takes place in the world, institutional and political hampering, information disperses and attainability, etc. In behavioral finance people’s reactions, as well as perception, are one of the most significant factors. Not only institutional investors but also individual investors who have been investing in financial markets in recent decades have become more popular. Short-term price changes are influenced by market participants that are not always based on logic, sometimes they can be inspired by mood or instant news. That is why Investing decision depends on the object and its financial status in the future. Whereas In traditional finance experts find out financial locus admired not by the error-prone and emotional Homo sapiens, but by the stunning Homo economicus. Behavior finance models always depend on a concept of independent investors who are susceptible to judgment and decision-making fallacy. This article issues a brief introduction on behavioral finance, which encircle research that drops the traditional premise of expected efficient markets.
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