Disposition refers to selling or transferring assets or securities. Learn how this process works in investing, its ...
Understanding behavioral finance and economics can greatly improve your investing success. Two classic anomalies to be aware of are the quality-minus-junk anomaly and the disposition effect. The ...
The disposition effect is a well-documented behavioural anomaly where investors tend to sell assets that have appreciated in value prematurely while holding on to depreciating ones for too long. This ...
Research consistently finds that investors, and their advisers, are too quick to sell winners and too slow to sell losers. The phenomenon has a name — the disposition effect — and it’s highly studied ...
We analyze brokerage data and an experiment to test a cognitive dissonance based theory of trading: investors avoid realizing losses because they dislike admitting that past purchases were mistakes, ...
Disposing stocks or bonds involves selling them on their relevant markets and may lead to capital gains taxes. Significant business asset sales must be reported if exceeding 10% of fiscal year assets, ...
It turns out good old-fashioned human behavior can result in a waterfall decline in stocks like Nvidia Corporation and Microsoft Corporation. The Disposition Effect is an investment behavior where ...