When an investor is more likely to sell appreciated stock and hold on to stocks valued under purchase price, this behavior is called:

Question

Quizplus · Accepted Answer

Loss aversion is a concept in behavioral finance where investors are more likely to avoid realizing losses than they are to realize gains. This leads to the behavior of holding onto stocks that have lost value, in hopes they will rebound, while quickly selling those that have appreciated.

When an Investor Is More Likely to Sell Appreciated Stock