An intensive professional development training course on
Behavioural Finance
The Influence of Psychology on the Behaviour
of Investors and the Subsequent Effect on Financial Markets
Why Choose this Training Course?
The decisions we make can profoundly impact the financial health of our company. In today’s dynamic economy, both investors and business managers face the challenge of understanding how financial markets react to new financial and economic data. Beyond the fundamental analysis of financial statements, market sentiment and the psychology of investors play crucial roles in financial decision-making. Behavioral finance examines how psychological factors influence the behavior of financial practitioners. In the Behavioral Finance Training Course, you will explore a range of decision-making biases and information processing errors that affect our financial decisions. This course will equip you with insights into these biases, helping you to make more informed and effective financial decisions.
This AZTech training course will feature:
- Modern portfolio theory and the idea of the rational investor
- Emotional Finance
- Psychology of Risk and Behavioral Biases
- Behavioral Corporate Finance
- Investor Behavior
What are the Goals?
By the end of this training course, participants will be able to:
- Define behavioral finance and its implication on financial markets
- Identify the investor psychology and analyze trading biases
- Understand cognitive biases and explore their root causes with real life examples
- List the most common emotional biases and discuss their causes with examples
- Understand loss aversion and other biases that contribute to its effect
- Study the herding bias and other social factors that distort decision-making
Who is this Training Course for?
This AZTech training course is suitable to a wide range of professionals but will greatly benefit:
- Board level members who wish to develop their understanding of cognitive financial decisions
- Investment Professionals working with Financial sector
- Risk Management directors
- Financial Analysts
- Capital Markets officials
- Professionals seeking to develop their understanding of Behavioral Finance
- Equity Sales and Portfolio Mangers
How will this Training Course be Presented?
This training course will utilise a variety of proven adult learning techniques to ensure maximum understanding, comprehension and retention of the information presented. This includes:
- Interactive Case Studies from the real world/delegates’ company
- Discussion and Evaluation of the latest international tools & techniques
- Role play
- Pre & Post Course Assessments
Participants will also be given a detailed set of handouts and examples in both printed and electronic format
The Course Content
Day One: Introduction to Behavioral Finance
- Conceptual definition of finance : Hard versus Soft Finance
- Understand the financial system operators: Arbitrageurs, Speculators and Hedgers
- What is behavioral finance?
- Traditional portfolio theory – A brief recap
- The risk profiles of investors: Risk neutral, Risk Takers and Risk Adverse
- Market sentiment & Stock market crashes
Day Two: Behavioural Finance: Application of Psychology in Financial Decisions
- Heuristics or Rules of Thumb
- Neuroeconomics and Neurofinance
- Emotional Finance: The Role of the Unconscious in Financial Decisions
- Experimental Finance
- The Psychology of Risk
- Psychological Influences on Financial Regulation and Policy
Day Three: Asset Pricing and Behavioural Biases
- Market Inefficiency
- Belief- and Preference-Based Models
- Disposition Effect
- Overconfidence
- Familiarity Bias
- Limited Attention & other behavioral biases
Day Four: Behavioural Corporate Finance
- Financing Decisions
- Capital Budgeting and Other Investment Decisions
- Dividend Policy Decisions
- Loyalty, Agency Conflicts, and Corporate Governance
- Initial Public Offerings
- Mergers and Acquisitions
Day Five: Investor Behaviour
- Trust Behavior: The Essential Foundation of Financial Markets
- Individual Investor Trading
- Cognitive Abilities and Financial Decisions
- Pension Participant Behavior
- Institutional Investors
- Derivative Markets
The Certificate
- AZTech Certificate of Completion for delegates who attend and complete the training course
DO YOU WANT TOLEARN MORE ABOUT THIS COURSE?
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