The article provides an overview of behavioral finance, which looks at how people's emotions and biases affect their financial decisions. Unlike traditional finance, which assumes investors are always rational, behavioral finance recognizes that people can be influenced by psychological factors. The study is based on the idea that markets are not always efficient and that investors may not always make logical choices. Two key theories, heuristics and prospect theory, help explain why people may make certain financial decisions. Heuristics theory looks at how biases like anchoring and overconfidence can impact decision-making, while prospect theory explores how people react to financial risks like loss aversion and regret.