Finance For Normal People

Author: Meir Statman
Publisher: Oxford University Press
ISBN: 0190626488
Size: 72.10 MB
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Finance for Normal People teaches behavioral finance to people like you and me - normal people, neither rational nor irrational. We are consumers, savers, investors, and managers - corporate managers, money managers, financial advisers, and all other financial professionals. The book guides us to know our wants-including hope for riches, protection from poverty, caring for family, sincere social responsibility and high social status. It teaches financial facts and human behavior, including making cognitive and emotional shortcuts and avoiding cognitive and emotional errors such as overconfidence, hindsight, exaggerated fear, and unrealistic hope. And it guides us to banish ignorance, gain knowledge, and increase the ratio of smart to foolish behavior on our way to what we want. These lessons of behavioral finance draw on what we know about us-normal people-including our wants, cognition, and emotions. And they draw on the roles of these factors in saving and spending, portfolio construction, returns we can expect from our investments, and whether we can hope to beat the market. Meir Statman, a founder of behavioral finance, draws on his extensive research and the research of many others to build a unified structure of behavioral finance. Its foundation blocks include normal behavior, behavioral portfolio theory, behavioral life-cycle theory, behavioral asset pricing theory, and behavioral market efficiency.

Effective Investments On Capital Markets

Author: Waldemar Tarczyński
Publisher: Springer
ISBN: 3030212742
Size: 25.74 MB
Format: PDF, Mobi
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This proceedings volume presents current research and innovative solutions into capital markets, particularly in Poland. Featuring contributions presented at the 10th Capital Market Effective Investments (CMEI 2018) conference held in Międzyzdroje, Poland, this book explores the future of capital markets in Poland as well as comparing it with the capital markets of other developed regions around the world. Divided into four parts, the enclosed papers provide a background into the theoretical foundations of capital market investments, explores different approaches—both classical and contemporary—to investment decision making, analyzes the behaviors of investors using experimental economics and behavioral finance, and explores practical issues related to financial market investments, including real case studies. In addition, each part of the book begins with an introductory chapter written by thematic editors that provides an outline of the subject area and a summary of the papers presented.

Behavioral Finance And Investor Types

Author: Michael M. Pompian
Publisher: John Wiley & Sons
ISBN: 1118235606
Size: 44.86 MB
Format: PDF, ePub, Docs
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Achieve investing success by understanding your behaviortype This groundbreaking book shows how to invest wisely by managingyour behavior, and not just your money. Step by step, MichaelPompian (a leading authority in the practical application ofBehavioral Finance concepts to wealth management) helps you plan astrategy targeted to your personality. The book includes a test fordetermining your investment type and offers strategies you can putinto use when investing. It also includes a brief history of thestock market, and easy-to-comprehend information about stocks andinvesting to help you lay a solid foundation for your investmentdecisions. Behavioral Finance and Investor Types is divided into twoparts. Test Your Type, gives an overview of Behavioral Finance aswell as the elements that come into play when figuring out BIT,like active or passive traits, risk tolerance, and biases. The bookincludes a quiz to help you discover what category you are in. Planand Act, contains the traits common to your type; an analysis ofthe biases associated with your type; and strategies and solutionsthat compliment and capitalize on your BIT. Offers a practical guide to an investing strategy that fitsboth your financial situation and your personality type Includes a test for determining your tolerance for risk andother traits that will determine your investment type Written by the Director of the Private Wealth Practice forHammond Associates—an investment consulting firm servinginstitutional and private wealth clients Behavioral Finance and Investor Types offers investors abetter sense of what drives them and what puts on their breaks. Byusing the information found here, you'll quickly become savvy aboutthe world of investing because you'll come to understand your placein it.

Financial Mail On Sunday Guide To Investment

Author: Andrew Leach
Publisher: Random House
ISBN: 144814941X
Size: 36.29 MB
Format: PDF
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A unique, truly comprehensive guide to all aspects of investment, that provides a wealth of expert advice and information in clear and jargon-free language that everyone will understand. Part I - getting startedWhat are shares? How to buy and sell shares and what to expect in terms of returns? How to find a stockbroker that's right for you. How much money should you invest directly in shares? Lower-risk investments in bonds, gilts, and unit and investment trusts. Risk - and achieving the balance between risk and reward. Part II - understanding the jargonWhat do company results show? Some key financial yardsticks and how to calculate them. Key accounting issues and how the books can be cooked. Financial ratios and what they tell you. Part III - for the more experienced investorRisk and the psychology of investment. Some theories about markets and stock market investment. Key investment styles and the gurus of investment. Different types of investment opportunities. Futures and options. Commodities.

Behavioral Finance

Author: H. Kent Baker
Publisher: John Wiley & Sons
ISBN: 9780470769683
Size: 69.28 MB
Format: PDF, ePub
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A definitive guide to the growing field of behavioral finance This reliable resource provides a comprehensive view of behavioral finance and its psychological foundations, as well as its applications to finance. Comprising contributed chapters written by distinguished authors from some of the most influential firms and universities in the world, Behavioral Finance provides a synthesis of the most essential elements of this discipline, including psychological concepts and behavioral biases, the behavioral aspects of asset pricing, asset allocation, and market prices, as well as investor behavior, corporate managerial behavior, and social influences. Uses a structured approach to put behavioral finance in perspective Relies on recent research findings to provide guidance through the maze of theories and concepts Discusses the impact of sub-optimal financial decisions on the efficiency of capital markets, personal wealth, and the performance of corporations Behavioral finance has quickly become part of mainstream finance. If you need to gain a better understanding of this topic, look no further than this book.

Stock Markets Investments And Corporate Behavior

Author: Michael DEMPSEY
Publisher: World Scientific
ISBN: 1783267003
Size: 80.72 MB
Format: PDF, Kindle
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"Stock Markets, Investments and Corporate Behavior examines the nature of stock market growth and decline, the function of financial markets, and their implications for commercial companies. Traditionally, finance academics have attempted to understand financial markets and commercial companies as physicists approach their subject matter: with a set of laws in mind that govern the field. But finance is not physics. The academic's approach falsely assumes that financial markets can be understood as systems within which self-interested maximizers behave in logical ways that are coordinated by the invisible hand of the price mechanism. This book demonstrates that finance is more appropriately understood as a field in which investors and finance managers may or may not use rational calculations as the basis of their decision making. This book opens with an effective dismantling of the traditional mathematical approach used to understand and describe markets and corporate financial behavior. In its place, the mathematics of growth and decline is developed anew, while holding to the realization that the decisions of organizations rely on the choices of real people with limited information available to them. The book will appeal to all students who wish to reappraise their knowledge of finance in a thoughtful manner. Specifically, this book is designed to appeal to anyone who wishes to refine their understanding of the nature of stock markets and financial growth, optimal portfolio allocation, option pricing, asset valuation, corporate financial behavior, and what it means to be ethical in our financial institutions."--

Investment Management A Science To Teach Or An Art To Learn

Author: Frank J. Fabozzi
Publisher: CFA Institute Research Foundation
ISBN: 1934667730
Size: 32.22 MB
Format: PDF
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Following the 2007–09 financial crisis, mainstream finance theory was criticized for failing to forecast the market crash, which resulted in large losses for investors. Has our finance theory, which many consider an idealization that does not take reality into account, failed investors? Do we need to reconsider the theory and how it is taught (and practiced)? This book explores current critiques of mainstream theory and discusses implications for the curricula of finance programs as well as for practitioners. In so doing, the authors integrate a review of the literature supported by conversations with finance professors, asset managers, and other market players.

The Indomitable Investor

Author: Steven M. Sears
Publisher: John Wiley & Sons
ISBN: 1118237390
Size: 77.25 MB
Format: PDF, ePub, Mobi
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A new approach to investing based on how Wall Street insidersapproach the market The Indomitable Investor deconstructs the stock market asthe public has come to know it and reconstitutes it from the insideout from the perspective of the fortunate few who dominate WallStreet. By revealing how top investors and traders think and actSteven Sears shows the stock market to be an undulating ocean ofmoney, with seasoned investors reading the waves others cannot. Teaching readers to think about the market in radicallydifferent ways, The Indomitable Investor shows how toimprove returns—and, just as importantly, avoidlosses—with disciplines deployed by people who almost alwaysdo exactly the opposite of what Wall Street says to do. Laying bare great fallacies, the book explains thatnon-professional investors wrongly think the stock market is aplace to make money, which is what Wall Street wants them to try todo. The Indomitable Investor says otherwise and shows howWall Street's best investors have a completely different focus. Explains the critical ideas and insights of top traders andinvestors in language anyone can understand and implement Packed with material rarely shared off Wall Street that is usedevery day by professional investors Introduces the 17 most important words on Wall Street Teaches critical skills, including: How to increase returns byfocusing on risk, not potential profits; how to use the stockmarket's historical patterns to optimize investment decisions;understanding key relationships between stocks and the economy thatpredict what will happen to stocks and the broader market; how toincrease mutual fund returns with an easy adjustment that redirectsthe bulk of profits to you—not mutual fund companies, and howto analyze information like seasoned investors to move beyond"statement of the obvious" news reports that turn ordinaryinvestors into Dumb Money Accessible to readers of all backgrounds, including those with alimited understanding of investing, The Indomitable Investorwill change how investors view the stock market, Wall Street, andthemselves.