Suppose you work in investments for a financial institution, and other banks are making a fortune with Irish goldmines. The fact that you are more likely to move to invest in Irish goldmines just because you see other banks doing so is called:

Question

Quizplus · Accepted Answer

This behavior is known as "herding," which refers to the tendency of individuals or entities to mimic the trades or investment strategies of a larger group, often without considering their own analysis or the fundamental value of the investment. This phenomenon is common in financial markets, where investors may follow the actions of others, assuming collective wisdom or fearing missing out on profitable opportunities.

Suppose You Work in Investments for a Financial Institution, and Other