Behavioral biases impact investment decisions of individual and institutional investors.
The article investigates how different types of investors, like regular people and big institutions, make decisions about investing money in the stock market. They looked at four common ways people can make mistakes when investing, like being too confident or following the crowd. They asked 175 investors questions and found that both regular people and big institutions can make bad decisions because they get too attached to their investments. But only regular people tend to be overconfident when making investment choices. This research helps us understand how different investors think and can help us make better decisions when investing our money.