Investor Behavioral Finance: Examining its Applicability on Egyptian Investors

Year 2018, Volume: 10 , 85 - 91, 12.09.2018

Sharif Musbah Abu Karsh

Abstract

Behavioral finance is a novel
approach in the financial markets domain. It originates due to an urgent need
to overcome and deal with the outstanding issues that traditional investors
face in today's modern finance system. Thus, it is said that certain investors
who do not have perfectly sensible elucidation regarding some financial
situations and issues can recognize these issues better by means of certain
financial models. Likewise, in a number of behavioral finance models, investors
are known to be unable to bring an up-to-date of their beliefs in the correct
manner. However, other models show that investors adopt questionable choices in
some cases. Thus, this paper introduces the behavioral finance, describes the
background and the aims and objectives of the study, and it introduces the
standards of the behavioral finance.

Keywords

Financial theory, Egyptian investors, Stock analysis, Anchoring theory, Loss aversion

References

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