• Offers a balanced explanation of the broad issues associated with behavioral finance in a succinct but authoritative manner
• Examines foundations and psychological concepts, cognitive biases, emotional biases, and social/cultural influences, investor behavior, nudging, and cognitive ability
• Uses a question and answer format to illustrate and answer relevant issues
• Enables readers to browse for topics of interest if they choose not to read the book from cover-to-cover
• Provides strategies for mitigating various behavioral biases

    
We are taught not to throw good money after bad or to cry over spilt milk. Yet we do both, otherwise we would not be taught not to. People often make choices based on what has been lost rather than what can be gained. Such choices are particularly costly in the world of finance.
  
Behavioral Finance: What Everyone Needs to Know® provides an overview of common shortcuts and mistakes people make in managing their finances. It covers the common cognitive biases or errors that occur when people are collecting, processing, and interpreting information. These include emotional biases and the influence of social factors, from culture to the behavior of one's peers. These effects vary during one's life, reflecting differences in due to age, experience, and gender. 
  
Among the questions to be addressed are: How did the financial crisis of 2007-2008 spur understanding human behavior? What are market anomalies and how do they relate to behavioral biases? What role does overconfidence play in financial decision- making? And how does getting older affect risk tolerance?