ABSTRACT
Such vast choice in financial market offers sets of financial securities and instruments for investing by private investors. For this research, previous studies are reviewed to follow up the influence of risk propensity toward cognitive biases and investment choices of private investors. Dependent on the publication year, journal of publication, research method and biases are used to lead the review. A literature review approach is applied throughout reviewing the existing literature. Theoretical and research frameworks are developed; even though, several unclosed areas for future researches are outlined. By this scope, it is possible to understand the possible bias behaviour by individual investors investing and thus provide the practical implications which suggest among others that a security issuer or policymakers together with financial advisories should assess the interest level of individual investors prior to meaning a security offer.
