Behavioral Finance: How Emotions Affect Investment Decisions

Introduction Traditional finance theory assumes that investors are rational. It suggests that people carefully analyze data, evaluate risks logically, and make decisions that maximize returns. However, real-world behavior tells a different story. Investors often make decisions driven by fear, greed, overconfidence, or social pressure rather than pure logic. Behavioral finance is the field of study … Read more

Liquidity in Finance: Why It Matters

Introduction Liquidity is one of the most important yet often overlooked concepts in finance. While investors focus heavily on returns, growth, and long-term wealth creation, they sometimes ignore a crucial question: how quickly can I access my money if I need it? Liquidity refers to how easily an asset can be converted into cash without … Read more