Home Wikituition Browse all terms Categories
Random term

Market Psychology & Behavioural Finance

1 term


A–Z
All A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Filtering by: Market Psychology & Behavioural Finance Starts with L Clear all
Market Psychology & Behavioural Finance

Loss Aversion

The tendency to feel the pain of a loss more strongly than the pleasure of an equivalent gain.

Test: the compensation demanded to accept a possible loss exceeds the loss's size, typically by a factor near two ratio (x, times)