The impact of Behavioral Finance on Investment Decision

The term "behavioral finance" refers to the study of how investors' and financial markets' learning happens. The lack of self-control, acting against one's own interests, and based judgments on personal preferences rather than facts are all symptoms of investor psychology.The study of how investors and financial markets behave is referred to as behavioral finance are affected by psychological influences. As a fundamental goal, behavioral finance seeks to uncover the causes of market inefficiencies and price mispricing. To show that people and the Markets for financial instruments are not always rational. and often make wrong judgments, the book relies on experiments and other forms of research. Human emotions and biases are studied in behavioral finance to better understand how stock values are influenced.