What is Behavioral Finance?

Investment decisions must be based on the investigation of accessible information to mirror the likely performance and risks linked with the investment.
The choices are primarily subjective by behavioral biases in the decision-maker, which leads to less than most favorable decisions.

Thinking behind proponents of this philosophy is that securities prices go away from their fair values, either upside or downside, due to the panic and greed of the market participants.

What Are The Objectives Of Economic Analysis?

·       Principles of Microeconomics and Macroeconomics

·       Key economic variables for carrying out fundamental analysis

·       Origins of Information/data of economic variable for carrying out economic analysis

Economics is learning how people make preferences under conditions of shortage and the impact of those options for people at an individual level and society at the macro level.
Economic analysis of human behavior begins with the supposition that people are sensible - they have well-defined goals and try to achieve them as best they can.

People generally face trade-offs in achieving their goals: resources, both material and human, are limited, and making one option would usually mean letting go of something else.
It entails prioritizing needs and wants and allocating limited resources to the desired goals.
Even though there are several branches of economic study, microeconomics and macroeconomics are the most well-known.

As their names indicate, microeconomics is the study of economics on a smaller (micro), more comprehensive range, and macroeconomics is the study of economics on a larger (macro), broader scale.

What Are The Basic Principles Of Microeconomics?

Microeconomics is the study of the behavior of individuals and their choices on what to buy and consume based on established prices, which signals where the economy has to direct its productive activities. The values of Microeconomics are that prices and production levels of goods and services in an economy are driven by consumer demand.
For that reason, Microeconomics aims at the drivers of decision-making and how individuals' decisions affect the overall supply and demand and supply of pick goods and services in an economy, and they're worth it.

Microeconomics also deals with the "theory of the firm." Broadening the notion of individuals, it deals with how firms take a different approach to raise their profits.
It deals with the decision-making process at the level of inputs, outputs, prices, production levels, profits, and losses of individual firms.

What Are The Importance And Uses Of Microeconomics?

Microeconomics deals with the understanding and working of a free market economy.
Microeconomics helps us understand how the prices of the products and services get determined in an economy, how individuals and firms behave concerning those prices, and how goods and services in an economy are distributed among its various participants.