Relationship between Behavioral Bias and Personal Investment Decisions

Abstract

To meet their working and fixed capital requirements, business units must raise short- and long-term money on a regular basis. This needs not just the easy availability of such money, but also a transmission mechanism that allows fund providers (investors/lenders) to communicate with borrowers/users (business units) and transfer cash to them as needed. The financial markets take care of this element by providing a location or a mechanism for investors/lenders to send money to business units.