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A survey of behaviorial finance

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Author Affiliations

  • 1Bhilai Institute of Technology, Durg, CG, India
  • 2Bhilai Institute of Technology, Durg, CG, India

Res. J. Management Sci., Volume 6, Issue (8), Pages 18-20, August,6 (2017)

Abstract

Traditionally, it is believed that participant of Financial Market are fully Rational and Markets are fully efficient. This belief has got prolonged effect in developing theories of Financial Markets. There were some instances in Financial Market operation which could not be explained by traditional Finance practice nor. To explain these phenomena academician looked towards Behavioral Finance as the key. This paper examines some basic tenets on which Behavior Finance stand. The primary distinction in assumption of traditional Finance practice nor and Behavior Finance practice nor is also discussed. It is concluded that though Behavior Finance might explain some anomalies of Financial Market a great deal of work need to be done to find out factors which lead to such anomalies.

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