1. A behavioral tendency where individuals take greater risks to avoid losses than to achieve equivalent gains; a principle in behavioral economics where the pain of losing is psychologically more powerful than the pleasure of gaining
Loss avoidance explains why investors often hold onto losing stocks longer than they should.
A aversão à perda explica por que os investidores frequentemente mantêm ações em perda por mais tempo do que deveriam.
2. In finance and risk management, the strategy of making decisions primarily motivated by the desire to prevent losses rather than to achieve profits
The company's loss avoidance strategy led them to reject profitable but risky ventures.
A estratégia de aversão à perda da empresa levou-a a rejeitar empreendimentos lucrativos mas arriscados.