The disposition effect is a well-documented behavioural anomaly where investors tend to sell assets that have appreciated in value prematurely while holding on to depreciating ones for too long. This ...

Disposition refers to selling or transferring assets or securities. Learn how this process works in investing, its ...

Disposing stocks or bonds involves selling them on their relevant markets and may lead to capital gains taxes. Significant business asset sales must be reported if exceeding 10% of fiscal year assets, ...

A moneyness-based propensity to sell (MPS) measure, at the aggregate level, determines the propensity of option holders to exercise their winning relative to losing positions. Using data on individual ...

We analyze brokerage data and an experiment to test a cognitive dissonance based theory of trading: investors avoid realizing losses because they dislike admitting that past purchases were mistakes, ...

Why investors wish they held onto profitable investments longer or sold loss-makers sooner The ‘disposition effect’ theorizes that losses—whether in stocks, real estate, or other domains—impact us ...

A unit of BNP Paribas found a solution to what's known as the disposition effect. Research consistently finds that investors, and their advisers, are too quick to sell winners and too slow to sell ...