![]() 966,796,170 visitors served. |
|
![]() Dictionary/ thesaurus | ![]() Medical dictionary | ![]() Legal dictionary | ![]() Financial dictionary | ![]() Acronyms | ![]() Idioms | ![]() Encyclopedia | ![]() Wikipedia encyclopedia | ? |
January effect |
Also found in: Wikipedia | 0.06 sec. |
|
January Effect A phenomenon occurring at the end of the year when investors, starting to worry about taxes, sell some stocks that are down so the losses can be written off against capital gains. This selling causes stocks to go down near the end of the year and back up in January when investors buy back the stocks they sold. Notes: The January effect is said to affect small-caps more than mid/large caps. The January effect phenomenon, however, has not occurred in years because the markets have adjusted for the effect.
Another reason the January effect is considered a non-event is that more people are using tax sheltered retirement plans and therefore have no reason to sell at the end of the year for a tax loss. See also: Capital Gain, Capital Loss, Monday Effect, October Effect, Santa Claus Effect, Taxes, Weekend Effect 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 evidence of a January effect.
|
|
? Mentioned in | ? References in periodicals archive | |
|---|---|---|
EQUITIES: The January effect states: "As January goes, so goes the year" for the U. This year, a "reverse" January effect is expected as large-cap stocks return to favor, Sam ,said. Remember the January effect, which documents the tendency of small stocks to outshine big stocks in the first month of the year? |
| Free Tools: |
For surfers:
Browser extension |
Word of the Day |
Help
For webmasters: Free content NEW! | Linking | Lookup box | Double-click lookup | Partner with us |
|
|---|