The conventional financial theory states that investors behave In a rational
manner m maximizing their wealth. But, many instances have proved that emotions
and psychology influences the decisions of the investors, causing them to behave
in an unpredictable and irrational manner. Behavioral Finance is an emerging
field of study which combines both, behavioral and cognitive psychology with the
conventional economics and finance, to provide a meaningful insight into, why
investors make irrational decisions and what are the factors influencing this
irrational behavior. This book explains the important cognitive/heuristic biases
that causes the investors to behave irrationally, which gives an edge to
understand, assess and react logically, to the