disposition effect

The present administrative structure is based on dispositions effected in 1800.

The disposition effect can be partially explained using loss aversion.

The disposition effect is an anomaly discovered in behavioral finance.

Because it is completely objective, its advice on a stock cannot be swayed by the disposition effect.

Known among researchers as the "disposition effect," this behavior can cost an average active investor thousands of dollars a year.

All investors, of course, are vulnerable to this tendency, known among behavioral researchers as the disposition effect.

They concluded that the disposition effect slows the pace of investor reaction to new information.

To measure the impact of the disposition effect, the professors estimated investors' total unrealized gains in each stock.

In one experiment, researchers looked at what emotions manifest the disposition effect, where individuals sell winning shares and hold losing ones.

It is also to be noted that a disposition includes a disposition effected by associated operations (IHTA 1984, s272).

IMMUNIZING yourself from the disposition effect isn't easy because no one behaves this way as a deliberate policy.

Psychologists have long known that because people hate to acknowledge mistakes, they tend to hold on to losing stocks longer than they keep winners, a tendency known as the disposition effect.

An extensive study of the disposition effect was conducted recently by Terrance Odean, an assistant professor of finance at the Graduate School of Management at the University of California at Davis.

Some behaviors observed in economics, like the disposition effect or the reversing of risk aversion/risk seeking in case of gains or losses (termed the reflection effect), can also be explained by referring to the prospect theory.

In a study by Terrance Odean, this tax-motivated selling is only observed in December, the final opportunity to claim tax cuts by unloading losing stocks; in other months, the disposition effect is typically observed.