Sebastian Morales

Behavioral Finance: Biases, Emotions and Financial Behavior

What Is Behavioral Finance? Behavioral finance, a subfield of behavioral economics, proposes that psychological influences and biases affect the financial behaviors of investors and financial practitioners. Moreover, influences and biases can explain all types of market anomalies, including those in the stock market, such as severe rises or falls in stock price. Given that behavioral finance […]

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Understanding Derivatives: A Comprehensive Guide to Their Uses and Benefits

A type of financial contract whose value is dependent on an underlying asset, a group of assets, or a benchmark. It’s an agreement set between two or more parties that can be traded on an exchange or over the counter (OTC). What Is a Derivative? The term “derivative” refers to a type of financial contract

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