Beyond greed and fear: understanding behavioral finance and the psychology of investing

Abstract

Preface PART I: WHAT IS BEHAVIORAL FINANCE 1. Introduction 2. Heuristic-Driven Bias: The First Theme 3. Frame Dependence: The Second Theme 4. Inefficient Markets: The Third Theme PART II: PREDICTION 5. Trying to Predict the Market 6. Sentimental Journey: The Illusion of Validity 7. Picking Stocks to Beat the Market 8. Biased Reactions to Earnings Announcements PART III: INDIVIDUAL INVESTORS 9. Get-Evenitis: Riding Losers Too Long 10. Portfolios, Pyramids, Emotions, and Biases 11. Retirement Saving: Myopia and Self-Control PART IV: INSTITUTIONAL INVESTORS 12. Open-Ended Mutual Funds: Misframing, Hot Hands, and Obfuscation Games 13. Closed-End Funds: What Drives Discounts? 14. Fixed Income Securities: The Full Measure of Behavioral Phenomena 15. The Money Management Industry: Framing Effects, Style Diversification, and Regret PART V: THE INTERFACE BETWEEN CORPORATE FINANCE AND INVESTMENT 16. Corporate Takeovers and the Winner's Curse 17. IPOs: Initial Underpricing, Long-term Underperformance, and Hot-Issue Markets 18. Optimism in Analysts' Earnings Predictions and Stock Recommendations PART VI: OPTIONS, FUTURES, AND FOREIGN EXCHANGE 19. Options: How They're Used, How They're Priced, and How They Reflect Sentiment 20. Commodity Futures: Orange Juice and Sentiment 21. Excessive Speculation in Foreign Exchange Markets Final Remarks Notes References Credits Index