When the original purchase price of the stock influences subsequent decisions to sell/hold, this is called:

Question

Quizplus · Accepted Answer

Anchoring refers to the cognitive bias where an individual relies too heavily on an initial piece of information (in this case, the original purchase price of the stock) to make subsequent decisions. This can lead to irrational decision-making, such as holding onto a stock that is underperforming simply because the individual is anchored to the price they originally paid for it, rather than making decisions based on current market conditions or the stock's future potential.

When the Original Purchase Price of the Stock Influences Subsequent