Abstract
In this series of articles from the Finance Vertical, we explore the intricate relationship between psychological factors and financial decision-making, emphasizing the principles of behavioral finance.
The first article, by Ananya Goel, Sanskriti Gupta, and Srilekha, examines how emotions, biases, and social influences shape financial decisions. It highlights key psychological principles such as prospect theory and loss aversion, illustrating how these factors lead to economic behaviors that deviate from traditional rational models.
The second article, authored by Saanvi Pathak, delves into the significance of behavioral finance in understanding market dynamics. It discusses how cognitive biases like overconfidence and herd behavior contribute to irrational investor actions, resulting in market anomalies and inefficiencies.
The third article, written by Kanishk Sinha, focuses on the impact of behavioral biases on investment strategies. It emphasizes the necessity for investors to recognize these biases to make informed decisions and mitigate risks associated with emotional influences in financial markets.

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