Glossary

Glossary

Term Book Chapter Definition
Herd Behavior Behavioral Finance Chapter 3: Behavioral Biases This is the phenomenon where investors follow what others are doing rather than basing their decisions on their own analysis. It can inflate bubbles and exacerbate crashes, leading to market instability.
Herd Behavior Corporate Finance Chapter 15: Behavioral Corporate Finance This is following the actions of others, often seen in investment bubbles or managerial trends.