--%>

Investors prospects of growth

Why might investors overestimate the prospects of growth companies and underestimate value companies?

E

Expert

Verified

Historically, investors have been seen to mistakenly overestimate the prospects of growth companies and underestimate value companies because of behavioral finance syndrome. The investment does not correspond to risk but to emotion.

   Related Questions in Finance Basics

  • Q : Define Warrant Warrant : It is an order

    Warrant: It is an order drawn by the State Controller directing the State Treasurer to reimburse a particular amount, from a specific fund, to the entity or person named. A warrant usually corresponds to a blank check however is not essentially payabl

  • Q : Define Grants Grants : It is generally

    Grants: It is generally used to explain amounts of money received by an organization for a particular purpose however with no obligation to repay (that is, in contrast to a loan, though the award might stipulate the repayment of funds under some situa

  • Q : Relationship which MPC bear to the size

    Normal 0 false false

  • Q : What are Staff Benefits Staff Benefits

    Staff Benefits: It is an object of expenditure symbolizing the state costs of contributions for employee’s retirement, health benefits, OASDI, and non-industrial disability leave advantages.

  • Q : What is Minor Capital Outlay Minor

    Minor Capital Outlay: The construction projects or tools needed to finish a construction project, estimated to cost less than $600,000 bonus any escalation per Public Contract Code 10108.

  • Q : Explain Equity Financing Equity

    Equity Financing: New or small businesses might find it hard to get debt financing therefore they turn to equity funding. The Equity financing frequently comes from non-professional investors like family, friends, or employees. This can as well come f

  • Q : What is Department Department: The

    Department: The governmental organization, generally belonging to the third level of the state organizational hierarchy as stated in the Uniform Codes Manual.

  • Q : What is Fiscal Year Fiscal Year (FY):

    Fiscal Year (FY): Twelve-month periods throughout which income is earned and received, compulsions are incurred, encumbrances are prepared, appropriations are expended, and for which the other fiscal transactions are recorded. In Cali

  • Q : Illustrates new balance sheet Normal 0

    Normal 0 false false

  • Q : Question on balance sheet of Yukon Bank

    Normal 0 false false