Behavioural Finance
Endowment Effect
Definition
What is Endowment Effect?
Valuing an owned asset more highly simply because it is owned.
Example in practice
How This Looks in Practice
A shareholderA person or entity that owns one or more shares in a company. demands more to sell than they would pay to buy the same share.
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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.