Behavioral finance is a field of research focused on how psychological influences can affect market outcomes.
Behavioral finance can be analyzed to understand different outcomes in different sectors and industries.
One of the key aspects of behavioral finance research is the impact of psychological biases.
Some common financial behaviors include loss aversion, consensus tendencies, and familiarity tendencies.
The Efficient Market Theory, which states that all stocks are fairly valued based on all available public information, is often refuted because it does not include irrational emotional behavior.