UNLOCKING THE INVESTMENT PUZZLE: THE INFLUENCE OF BEHAVIORAL BIASES & MODERATING ROLE OF FINANCIAL LITERACY

This study aims to investigate the influence of behavioral biases on investors' investment decisions and explore moderating role financial literacy in this relationship. Research adopts quantitative approach, utilizing a survey questionnaire distributed among sample individual investors actively trading Pakistan stock exchange. Survey assesses prominent like overconfidence, disposition effect, risk-aversion bias, herding behavior, while measuring participants' level literacy. Findings proves significant impact decisions. Respondents validate prevalence shared biases, including behavior. These tend decision-making process investors, leading suboptimal choices. Results suggest that plays linking The implications findings importance promoting amid over guidance support professionals, ultimately improving quality decision-making.