turn-of-the-month effect

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Turn-of-the-Month Effect

A temporary increase in stock prices during the last few days and the first few days of each month. Some analysts credit the turn of the month effect to distributions from pension funds and other retirement accounts that the pensioners immediately reinvest in the stock market. See also: Calendar effect.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

turn-of-the-month effect

The tendency of stock prices to increase during the last two days and the first three days of each month. Some researchers ascribe the effect to the timing of monthly cash flows received by pension funds and reinvested in the stock market.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
We formulated the hypothesis for the turn of the month effect as under.
H3: Turn of the month effect has significant impact on KES- 100 Index returns.
The "turn of the month effect" indicates that stock returns are higher during the first few days of the month than through the rest of the month.