The offering prices of 64 issues of a popular retail structured equity product were, on
average, almost 8% greater than estimates of the products' fair market values obtained using …

Cryptocurrencies have received growing attention from individuals, the media, and
regulators. However, little is known about the investors whom these financial instruments …

Cryptocurrencies have received growing attention from individuals, the media, and
regulators. However, little is known about the investors whom these financial instruments …

We examine the notion that financial products which cater to investors' behavioral biases
can yield high trading activity and thus be profitable for issuers. Our setting considers …

We investigate the hypothesis that the same investors trade differently in different markets.
More precisely, we discuss the hypothesis that the same investors trade derivatives …

Based on the actual trading behavior of individual investors in the Portuguese financial
market during almost ten years this paper examines the socio-demographic characteristics …

Behavioral finance studies the impact of psychological phenomena on financial behavior. In
the center of the debate is the way people make decisions. In the course of making …

The suitability of complex financial products for household investors is an important issue in
light of consumer financial protection. The US Dodd–Frank Act, for instance, mandates that …

The author takes the position that too many entering the profession of finance are incorrectly
trained in valuation methods. The price/earnings multiple dominates the investments …

This paper provides a new approach for pricing and hedging popular highly path-dependent
equity-linked contracts. We illustrate our technique with two examples: the locally capped …