Neurofinance

Neurofinance is a field that combines neuroscience with finance to understand how our brains influence financial decision-making. It examines how emotions, biases, and cognitive processes affect our investment choices and market behavior. By using brain imaging and other techniques, researchers explore how feelings like fear and greed can lead to irrational decisions, such as panic selling or overly optimistic buying. This helps investors and financial professionals better understand the psychological factors at play, leading to improved strategies that account for human behavior in financial markets.