RELATIVITY TRAP
A psychological trap that leads people to make irrational choices when making spending decisions. The relativity trap is often exploited by savvy marketers to persuade consumers into making a spending decision that maximizes their profit. It arises because the human brain works in a relative way while making comparisons and finds it difficult to compare across different categories. Countless experiments on this subject find that the relativity trap is a strong issue that affects financial decisions for a great number of people.
POPULAR TERMS
M3
Measuring money supply which includes the following: M2, large time-deposits, repos of maturity larger than one day at commercial banks, institutio ...
S&P 500 Mini
S&P 500 Mini is a derivative contract that represents a designated fraction of the trading value of a standard S&P futures or options contr ...
Rationalization
A reorganization of a company to surge its efficiency. Reorganization may lead to an expansion or reduction in company size, policy changes, or an ...
Industry Bet
Strategy where investors or portfolio managers escalate or reduce holdings in an entire industry, rather than buying or selling individual stocks f ...
Risk Averse
A term that describes an investor who will prefer an investment with the lower risk when he or she encounters two investments with a similar expect ...
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Where can you see market movements? Charts. Thanks to technology, traders can view as many market information as they can in one go. But not all ch ...
Student Loans: Consolidating Private Loans
Fixed interest rates.
That is one viable reason for consolidating private loans although you are not mulling over that option. Private lo ...
Buying a Home: Determining the Amount You Can Afford
You have decided to buy a house, choose the best location, and select a home suitable for you needs. It is high time to determine the amount you ca ...
Retirement Planning: Creating a Nest Egg
Last time, we discuss the different income sources for building a retirement fund. We shall now tackle the ways to create a retirement nest egg.
Retirement Planning: Allocating and Diversifying
The assets you select to invest in will depend on numerous factors, including your risk appetite and investment timeframe. The two primary factors ...
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