The rationale behind how people value and trade stocks is of unparalleled interest to governments, companies and other participants in stock markets. This volume focuses on the way in which investors process information and form expectations about future gains. It argues that humans fall short of the perfect information processing required by theory, and that their expectations are based on more than just future company earnings. The author discusses the psychology of investing, providing detailed coverage of how financial expectations are formed, how complex decisions are made and how...

This work provides an assessment of the factors influencing differences between people who save and people who do not save money. The author brings together research and analysis in an attempt to develop the reader's understanding about rationality, consumer behaviour and expectations.