Behavioral Economics and the SEC. - Stanford Law School

Behavioral Economics and the SEC.

By Stanford Law School

  • Release Date - Published: 2003-10-01
  • Book Genre: Law
  • Author: Stanford Law School
Our rating: 5/5 stars

Score: (From 0 Ratings)

Behavioral Economics and the SEC. Stanford Law School read online review & book description:

INTRODUCTION Not all investors are rational. Quite apart from the obvious examples of credulity in the face of the latest Ponzi scheme, there is no shortage of evidence that many investors' decisions are influenced by systematic biases that impair their abilities to maximize their investment returns. (1) For example, investors will often hold onto poorly performing stocks longer than warranted, hoping to recoup their losses. (2) Other investors will engage in speculative trading, dissipating their returns by paying larger commissions than more passive investors. (3) And we are not just talking about widows and orphans here. There is evidence that supposedly sophisticated institutional investors--mutual funds, pension funds, insurance companies--suffer from similar biases that impair their decisions. (4) These biases are not merely isolated quirks, rather, they are consistent, deep-rooted, and systematic behavioral patterns. Apparently even the considerable sums at stake in the securities markets are not enough to induce market participants to overcome these cognitive defects on a consistent basis.

@2019 – Go Read a Book. All Right Reserved. goreadabook.org is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for website owners, to earn advertising fees by linking and advertising to amazon.com and any other website that may be affiliated with Amazon Service LLC Associates Program; As an Amazon Associate I earn from qualifying purchases.

Behavioral Economics and the SEC. book review Behavioral Economics and the SEC. ePUB; Stanford Law School; Law books.

Post a review about this book