Abstract

The study of behavioral finance is characterized by analyzing the volatility of financial markets, however, in a contemporary view, one can also apply it in other fields such as commerce and factories, and its dislike to be able to invest or not its financial capital . The objective of this work is to present foreign reflections on a new branch in financial theory, Behavioral Finance, which aims to adhere the psychological and sociological aspects of the individuals in the decision making process at the time of making an investment, as well as their applications through incorporation evidence of the investor's irrationality. This new segment aims to review and improve the current economic-financial model. The association with behavioral finances provides both the understanding of the psychological process that motivates the investments, helping in the construction of a more adequate decision-making model, and in the hiring of its managers who must possess adequate technical and psychological skills in order to avoid cognitive bias as overconfidence.

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