Glossary

Glossary

Term Book Chapter Definition
Loss Aversion Behavioral Finance Chapter 2: Psychology and Finance A tendency to prefer avoiding losses to acquiring equivalent gains. In investing, loss aversion can lead to holding onto losing investments too long in the hope that they will rebound.
Loss Aversion Certified Financial Planner (CFP) Exam Chapter 8: Client Communication and Behavior A concept in behavioral finance where people tend to prefer avoiding losses than acquiring equivalent gains, leading to risk-averse behavior.
Loss Aversion Corporate Finance Chapter 15: Behavioral Corporate Finance This is avoiding decisions that involve potential losses, even when the expected value is positive.