Business / Taxes / January Effect: Each year, the stock market tends to increase slightly in value between December 31 and the end of the first week of January. Known as the January Effect, this rise starts when investors sell underperforming stocks at year-end to claim capital losses on their tax returns. After the new tax year begins on January 1, the same investors tend to reinvest the money from those sales, heightening demand temporarily, and making the overall market rise slightly during that week.
Effect Noun Synonyms: effectiveness, efficacy, force, power, capacity, potency, influence, impression, impact, clout, punch
Effect Adjective Synonyms: result, consequence, outcome, conclusion, upshot, aftermath, impact
Business / Finance / Calendar Effect: Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effec MORE
Business / Finance / January Effect: Refers to the historical pattern that stock prices rise in the first few days of January. Studies have suggested this holds only for small-capitalization stocks. In recent years, there is less evidenc MORE