scorecardresearchWhat is Opportunity Cost and why you must make sure to factor it in to take rational financial decisions

What is Opportunity Cost and why you must make sure to factor it in to take rational financial decisions

Updated: 16 Sep 2022, 08:40 AM IST
TL;DR.
Investors commonly neglect opportunity cost. In general, it refers to the hidden cost of failing to take a different path of action. If a corporation follows a certain business plan without first weighing the benefits of competing approaches, they may overlook their opportunity costs and the chance that they could have achieved considerably well if they had chosen differently.
The quantity of possible advantages that an individual loses out on when they prefer one alternative over another is known as opportunity cost.

The quantity of possible advantages that an individual loses out on when they prefer one alternative over another is known as opportunity cost.