Glossary

Glossary

Term Book Chapter Definition
Overconfidence Behavioral Finance Chapter 1: Foundations of Behavioral Finance Overconfidence refers to an individual's belief that they are better than they actually are. In financial markets, overconfidence can lead to excessive trading and risk-taking.
Overconfidence Corporate Finance Chapter 15: Behavioral Corporate Finance This is overestimating one’s knowledge or ability, leading to overly aggressive financial decisions.