disposition effect

is the tendency to gamble more in the domain of losses because people dislike incurring losses much more than they enjoy making gains.

'Shefrin and Statman (1985) predicted that because people dislike incurring losses much more than they enjoy making gains, and people are willing to gamble in the domain of losses, investors will hold onto stocks that have lost value (relative to the reference point of their purchase) and will be eager to sell stocks that have risen in value. They called this the disposition effect.' Montier (2002) pages 23-24

'Meir Statman and I (Shefrin and Statman 1985) coined the term disposition effect, as shorthand for the predisposition toward get-evenitis.' Shefrin (2000) page 107

is the tendency to hold on to poor investments too long and sell good investments too soon.

Disposition Effect is the idea that Holding on to poor investments too long and selling good investments too soon.

is the tendency to sell an asset that has accumulated in value and resist selling an asset that has declined in value.

the Disposition effect is The tendency to sell an asset that has accumulated in value and resist selling an asset that has declined in value.

disposition effect, n.Definitions

disposition effect