John R. Nofsinger

This book is the first of its kind to delve into the fascinating and important subject of the psychology affecting investments. Its unique coverage describes how investors actually behave, the reasons and causes of that behavior, why the behavior hurts their wealth, and what they can do about it.Chapter topics include overconfidence, fear of regret and seeking pride, considering the past, mental accounting, forming portfolios, representativeness and familiarity, social interaction and investing, mood and investing, and self control and decision making.anyone who wants to invest (either professionally or personally), as well as portfolio managers, fund managers, pension managers, financial advisers, brokers, financial planners, traders, financial analysts, and CPAs.

The Psychology of Investing

H. Kent Baker

A detailed look at the role of social responsibility in finance and investing The concept of socially responsible finance and investing continues to grow, especially in the wake of one of the most devastating financial crises in history. This includes responsibility from the corporate side (corporate social responsibility) as well as the investor side (socially responsible investing) of the capital markets. Filled with in-depth insights and practical advice, Socially Responsible Finance and Investing offers an important basis of knowledge regarding both the theory and practice of this ever-evolving area of finance. As part of the Robert W. Kolb Series in Finance, this book showcases contributed chapters from professionals and academics with extensive expertise on this particular subject. It provides a comprehensive view of socially responsible foundations and their applications to finance and investing as determined by the current state of research. Discusses many important issues associated with socially responsible finance and investing, like moral hazard and the concept of "too big to fail" Contains contributed chapters from numerous thought-leaders in the field of finance Presents comprehensive coverage starting with the basics and bringing you through to cutting-edge, current theory and practice Now more than ever, we need to be mindful of the social responsibilities of all investment practices. The recent financial crisis and recession has changed the financial landscape for years to come and Socially Responsible Finance and Investing is a timely guide to help us navigate this difficult terrain.

Financial Institutions, Corporations, Investors, and Activists

Socially Responsible Finance and Investing

While traditional finance focuses on tools used to optimize return and risk, this book explains how psychology can affect our decisions more than financial theory. Covering the ways investors actually behave, this is the first book of its kind to delve into the ways biases influence investment behavior and how overcoming these biases can increase financial success. Now in its sixth edition, this classic text features: An easy-to-understand structure, illustrating psychological biases as everyday behavior, analyzing their effect on investment decisions, and concluding with academic studies that exhibit real-life investors making choices that hurt their wealth. A new chapter on the biology of investment, exploring the latest research on genetics, neuroscience, and how hormones, aging, and nature versus nurture inform our investment behavior. An additional strategy for controlling biases, helping readers understand the psychology that motivates markets and how to address it. Experiential examples, chapter summaries, and end-of-chapter discussion questions to help readers test their practical understanding. Fully updated with the latest research in the field, this book will prove fascinating and educational to advanced students in investment, portfolio management, and behavioral finance classes as well as investors and financial planners. An updated companion website includes an instructor's manual, PowerPoint slides, and more.

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.

Investors, Corporations, and Markets

Behavioral Finance

"This is the only textbook that describes (1) how investors actually behave, (2) the reasons and causes of that behavior; (3) why the behavior hurts their wealth; and (4) what they can do about it."--Jacket.

Vesa Puttonen

There are two important things you must do to be a savvy investor: make good investment decisions, and avoid costly mistakes. In the second book in The Savvy Investor's Guide series, investing experts H. Kent Baker, John R. Nofsinger, and Vesa Puttonen come together to offer an insightful guide on avoiding those detrimental missteps.

The Savvy Investor's Guide to Avoiding Pitfalls, Frauds, and Scams

We are all human, especially when we are investing, and that goes for the big guys too. Dispassionate economic theories say nothing about the emotional decisions we make - or the financial disasters they can cause. In this text, one of the world's leading experts on investor psychology deconstructs spectacular failures from the world's most prominent investors. They ought to have known better, but they didnt. They let overconfidence, hubris, greed or shortsightedness get the best of them. Chances are, you're making some of the same mistakes right now.

Investment Blunders of the Rich and Famous-- and what You Can Learn from Them

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.

John R. Nofsinger

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