Abstract
Most of the investors focus on human emotions not expressed openly while making investment decisions. Emotions have a powerful position in making investment decisions. They drive human behavior that is consistent with economic predictions while making investments. Emotions play a significant role while making decisions on investments just like any other business decisions. Behavioral finance tries to combine behavioral and cognitive psychological theory with conventional economics and finance to provide justifications for why people make irrational financial decisions. The aim of this chapter is to understand whether emotional phases affect investors' decisions in different investment situations basing on levels of uncertainty. Positive emotions like self-confidence, challenge, and hope increase the decision-makers tendency to exaggerate the commitment, and negative emotions, namely embarrassment and strain, do not.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
