A STUDY ON BEHAVIOURAL FINANCE WITH SPECIAL REFERENCE TO GEOJITH FINANCIAL SECURITIES LTD, MALAPPURAM, KERALA

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Behavioral finance is a new area of financial research that recognizes the psychological element in the financial decision making. Thus challenging traditional models that assume, investors will always weigh risk/ return factors rationally and act without bias. Behavioral finance is the study of how investors make decisions and how these decisions that affect the stock prices and broad market movements. Investors are human and humans aren’t perfectly rational in decision making. When they buy on emotion, they not only jeopardize their own investment plans, but also create opportunities for others in the securities market. Closely associated with behavioral economics, the concept seeks to explain what occurs when emotional responses are involved in decisions that impact the stock market and prices of individual stock, market prices in selected markets, and allocation of financial resources in both savings and spending habits.

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