Behavioural Finance
Availability Heuristic
Definition
What is Availability Heuristic?
Judging likelihood based on examples that come easily to mind.
Example in practice
How This Looks in Practice
A recent fraud story causes an investorA person or organisation that commits capital with the expectation of a financial return. to view every fund as fraudulent.
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Related Terms
Behavioural Finance
Loss Aversion
The tendency to feel losses more strongly than equivalent gains.
Behavioural FinanceOverconfidence Bias
The tendency to overestimate one's knowledge, forecasting ability, or control.
Behavioural FinanceConfirmation Bias
The tendency to seek or interpret information that supports an existing belief.
Sustainable InvestingESG Investing
Incorporating environmental, social, and governance factors into investment analysis or ownership.