Behavioral Finance
/ˌbɪˈheɪvjərəl fəˈnæns/
Definitions
- (n.) The study of psychological, social, cognitive, and emotional factors affecting economic decisions and market behaviors relevant to financial law and regulation.
Behavioral finance helps regulators understand irrational investor behavior during market volatility.
Forms
- behavioral finance
Related terms
See also
Commentary
Behavioral finance is important in legal contexts involving investor protection and regulatory compliance, highlighting deviations from traditional rational actor models.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.