Announcement Effect

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Announcement Effect

A change in security prices or volatility as a result of some announcement. For example, if the Federal Reserve raises interest rates, stock prices are liable to fall. Likewise, if a company announces an acquisition, its stock may rise. The announcement effect may cause drastic price changes; as a result, companies and governments often selectively leak or hint at announcements before they occur to minimize surprises. The announcement effect is also called the signal effect. See also: Price out the News.
References in classic literature ?
The old maid's marriage had a signal effect in defining the two parties in Alencon.
It is the use of computer-aided tools that Goral says has had a signal effect on manufacturing engineering activities at Ford.
If German political opinion swings back against the ECB, it may well be that the signal effect of the OMT is weakened because markets panic about Germany's support.
A few years ago he came out with The Age of Heretics: Heroes, Outlaws and the Foundations of Corporate Change, that provides profiles of people of past generations who had a signal effect on some of the change methodologies that were once considered to he, well, heretical, but which have now become part of the status quo.
This order from DiGi is our first EDGE contract in Asia, so it will have a signal effect on the entire Asian market," said Christoph Caselitz, President of Networks within the Siemens Information and Communication Mobile Group.
Each detection zone functions as an independent detector and automatically increases discrimination by reducing the cumulative signal effect caused by distributed harmless objects.
The treatment with anti-TNF agents neutralises the signal effects of TNF and thus alleviates the suffering of those affected.
See, however, Staddon & Cerutti, 2003, for an alternative interpretation of signal effects in chained schedules.