Behavioural Finance
Anchoring Bias
Definition
What is Anchoring Bias?
The tendency to rely too heavily on an initial number or reference point.
Example in practice
How This Looks in Practice
A buyer remains focused on a share's old ₦100 price even after its business deteriorates.
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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.