Behavioral finance

Abstract

The purpose of this research paper is to discover why financial markets are not efficient. The issue to address is why does the financial market reflect more than just information presented to the public? The paper informs the readers of possible reasons why the market is unpredictable and the causes for why a perfect market does not exist. Many of the market's inefficiencies are traced back to behavioral finance and how individual investors behave regarding investing. The paper presents the reader with the research to support these claims.