Behavioral Finance: Finance for Normal People – How Investors and Markets Behave

  • Accountant
  • CPA (CA)
  • CMA
  • CPA (US)
  • CA - ICAEW
  • ACCA
  • FPAC
  • CA - Ireland
  • CA - Scotland
  • CPA - Ireland
  • CWS

Published: March, 2021

Before starting this self study program, please go through the instructional document.

  • Course Description
  • Course Qualification
  • Presenter
  • FAQ

Course Description


  • Normal people have normal wants, Why do some normal people buy lottery tickets?
    14 mins
  • Framing the trading game as tennis against a practice wall
    20 mins
  • Hindsight shortcuts and errors
    48 mins
  • Availability shortcuts and errors
    62 mins
  • Correcting cognitive and Emotional Errors
    129 mins
  • Wants for utilitarian, expressive and emotional benefits
    152 mins

Course Description

Though very simple in its perspective, finance is a very complex subject. It is normally understood as a specialized choice for the few to learn. However, with financial tools widely available to public, a simple and conscious understanding about finance is the requirements of the time for an average Joe. 

This CPE webinar for CPAs focuses not only on what finance is, but it also attempts to explore how the finance evolved in the first and further generations. The special webinar takes a specialized approach in explaining the psychological and rational behavior by the members of public. 

The first generation of behavioral finance, starting in the early 1980s, largely accepted standard finance’s notion of people’s wants as “rational” wants – mainly high expected returns and low risk. That first generation commonly described people as “irrational” - misled by cognitive and emotional errors on their way to their rational wants. 

The second generation describes people as “normal,” neither “rational” nor “irrational.” Normal people are people like you and me. Each of us has wants - hope for riches, freedom from poverty, nurturing children and families, being true to values, gaining high social status, playing games and winning, and more. 

We apply cognitive and emotional shortcuts as we pursue our wants. Sometimes, however, we are diverted from our wants by ignorance and cognitive and emotional errors. 

Cognitive shortcuts that can turn into cognitive errors include: 

  • Framing, Hindsight, Confirmation, Anchoring and adjustment, Representatives, Availability, and Confidence.
  • Emotional shortcuts that can turn into errors include: Fear, Hope, Anger, Sadness, Disgust, Happiness, Regret, and Pride.
  • At the end, this online CPE webinar provides an explorator's perspective on how to pursue your wants, using cognitive and emotional shortcuts, while correcting cognitive and emotional errors.

Recommended for:

This online Finance CPE webinar is recommended for CPAs, CEOs, CFOs, Business owners, Finance professionals and Financial consultants 

Learning Objectives

  • To identify normal wants
  • To recognize cognitive shortcuts and errors
  • To identify emotional shortcuts and errors
  • To recognize correct cognitive and emotional errors

Who Should Attend?

  • CEO
  • CFO/Controller
  • Entrepreneurial CPA
  • Finance Director
  • Finance Pros
  • Financial Planner
  • Finanical Analyst
  • Personal Financial Specialist (PFS)
  • Private Wealth Advisor
  • VP Finance
  • Wealth Management Advisor
  • Wealth Planner

Course Qualification

Webinar Qualifies For

  • 3 CPE Credit for Certified Management Accountants (CMA)
  • 3 CPE Credit of Finance for Certified Public Accountants (CPA-US)
  • 3 CPD Credit for Chartered Professional Accountant (CPA Canada)
  • 3 CRE Credit for Certified Corporate FP&A Professional (FPAC)
  • 3 CE Credit for Certified Fiduciary & Investment Risk Specialist (CFIRS)
  • 3 CE Credit for Certified Wealth Strategist (CWS)
  • 3 General Credit for Accountant/Bookeeper
  • 3 CPD Credit for CA - ICAEW
  • 3 CPD Credit for Chartered Certified Accountants (ACCA)
  • 3 CPD Credit for Chartered Accountants - Ireland (CAI)
  • 3 CPD Credit for Chartered Accountants - Scotland
  • 3 CPD Credit for CPA - Ireland

Additional details

  • Course Level :
  • Credits :
  • Instructional Method :
    QAS Self Study
  • Pre-requisites :
  • Advance Preparation :


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About Presenter

Meir Statman

Professor, Santa Clara University Leavey School of Business

Meir Statman is the Glenn Klimek Professor of Finance at Santa Clara University. His research focuses on behavioral finance. He attempts to understand how investors and managers make financial decisions and how these decisions are reflected in financial markets. His most recent book is “Behavioral Finance: The Second Generation,” published by the CFA Institute Research Foundation.

The questions he addresses in his research include:

  • What are investors’ wants and how can we help investors balance them?
  • What are investors’ cognitive and emotional shortcuts and how can we help them overcome cognitive and emotional errors?
  • How are wants, shortcuts and errors reflected in choices of saving, spending, and portfolio construction?
  • How are they reflected in asset pricing and market efficiency? 

Meir’s research has been published in the Journal of Finance, the Journal of Financial Economics, the Review of Financial Studies, the Journal of Financial and Quantitative Analysis, the Financial Analysts Journal, the Journal of Portfolio Management, and many other journals.  The research has been supported by the National Science Foundation, the CFA Institute Research Foundation, and the Investment Management Consultants Association (IMCA).  

Meir is a member of the Advisory Board of the Journal of Portfolio Management, the Journal of Wealth Management, the Journal of Retirement, the Journal of Investment Consulting, and the Journal of Behavioral and Experimental Finance, an Associate Editor of the Journal of Behavioral Finance, and the Journal of Investment Management and a recipient of a Batterymarch Fellowship, a William F. Sharpe Best Paper Award, two Bernstein Fabozzi/Jacobs Levy awards, a Davis Ethics Award, a Moskowitz Prize for best paper on socially responsible investing, a Matthew R. McArthur Industry Pioneer Award, three Baker IMCA Journal Awards, and three Graham and Dodd Awards.  Meir was named as one of the 25 most influential people by Investment Advisor. He consults with many investment companies and presents his work to academics and professionals in many forums in the U.S. and abroad. 

Meir received his Ph.D. from Columbia University and his B.A. and M.B.A. from the Hebrew University of Jerusalem.

About Company

Santa Clara University Leavey School of Business

Located 40 miles south of San Francisco in California’s Silicon Valley, Santa Clara University offers rigorous undergraduate curricula in the arts and sciences, business, and engineering. It has nationally recognized graduate and professional schools in business, law, engineering, pastoral ministries, counseling psychology, education, and theology.

Founded in 1851 by the Society of Jesus as “Santa Clara College,” SCU is California’s oldest operating institution of higher learning. It was established on the site of Mission Santa Clara de Asís, the eighth of 21 California missions. The 8,800-student university draws upon more than 450 years of the Jesuit tradition of educating the whole person for service and leadership.

Santa Clara University is a Jesuit, Catholic university that educates citizens and leaders to build a more just, humane, and sustainable world. In addition to abundant career opportunities provided by our ideal location, students have access to a variety of educational, cultural, and recreational activities. The 106-acre campus features beautiful gardens and landscaping, and has more than 51 buildings, including 10 residence halls, two libraries, a student center, and extensive athletic facilities.

The 2013 edition of U.S. News & World Report’s “Best Colleges” ranked SCU among master’s universities:

• No. 2 comprehensive university in the West
• Highest average freshman retention rate (93%) in the West
• Highest average graduation rate (86%) in the West
• No. 14 undergraduate engineering program in the U.S.

Named as one of the nation’s top 75 institutions for undergraduate education by Forbes magazine’s “List of America’s Top Colleges,” SCU was also listed as one of the top 50 in the nation for the best value among private universities in Kiplinger’s Personal Finance magazine. The undergraduate business program is No. 35 in the nation, according to “The Best Undergraduate B-schools,” by Bloomberg Businessweek magazine.


FAQs content

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Ratings and Review


2 Ratings



Very Good









Andy Smith, CPA/ABV, CPA (US)

Dec 15th, 2021


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