Scribd
Upload
17 views1 page

Glossary BehavioralFinanceFoundations

Glossary of Behavioral Finance Foundations

Uploaded by

Jerry Jong Cheng Kiat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
17 views1 page

Glossary BehavioralFinanceFoundations

Glossary of Behavioral Finance Foundations

Uploaded by

Jerry Jong Cheng Kiat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

GLOSSARY

Behavioral Finance Foundations


With Michael McDonald

Use these terms and definitions below to understand concepts taught in the course.

Transcript Search: note that you can search for terms directly within the course. To search video text, switch to the Transcripts tab, then
press Cmd/Ctrl + F on your keyboard to run a search within the active transcript.

Term Definition

The behavioral bias in which people tend to see recent price levels as
anchoring the fair price of a stock and to ignore or slowly incorporate new
information

Emotions or other non-logical influences that lead a person to make a


behavioral bias
decision, most often leading to a financial blunder

A field that combines behavioral psychology with conventional


behavioral finance economics and finance to explain why people make bad, irrational
finance decisions

A type of investment that can be used to capitalize on personal


call option
preferences for skewness to try to capture the positive tail risk

The behavioral bias in which people tend to draw different conclusions


framing
from information depending on how it is presented

The initial public offering; the first time investors have an opportunity to
IPO
buy stock in a new firm

A type of investment that can be used to mitigate downside risks in


put option stocks; used to deal with the problems of risk aversion and to avoid
uncertainty in investments

A tool that combines with the probabilities of expected scenarios and


risk aversion
provides a way to estimate the value of a company

The Volatility Index that represents market volatility; also referred to ask
VIX
the market’s fear gauge

LinkedIn Learning and Lynda.com are registered trademarks of LinkedIn Corporation. All rights reserved, 2019.

You might also like