In stock markets, January Effect refers to the general rise in share prices...
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.
Tendency of the stock market to rise between December 31 and the end of the first week in January, following year-end selling for tax reasons.
The tendency for securities prices to recover in January after tax-related selling is completed before the year-end.
The tendency for stocks to recover in January after end of year, tax-related selling has completed.
Is the tendency for small capitalization stocks to exhibit an upward bias in their price behavior. Some analysts believe that this may be partially attributable to the influence of index funds buying stocks for various retirement plans. Such new contributions would be qualified to commence in January. Also, the marginal impact of such purchases would be greater on smaller capitalization issues as opposed to larger capitalization stocks.
Tendency of the stock market to rise between December 31 and the end of the first week in January. The January Effect occurs because many investors choose to sell some of their stock right before the end of the year in order to claim a capital loss for tax purposes. Once the tax calendar rolls over to a new year on January 1st these same investors quickly reinvest their money in the market, causing stock prices to rise. Although the January Effect has been observed numerous times throughout history, it is difficult for investors to profit from it since the market as a whole expects it to happen and therefore adjusts its prices accordingly. See Also calendar effect, Santa Claus rally
An effect observed in the United States whereby stocks have historically tended to rise markedly during the period starting on the last day of December and ending on the fourth trading day of January. This effect occurs due to year-end selling to create tax losses, recognize capital gains, effect portfolio window dressing or raise holiday cash. While such selling depresses the stocks, it has nothing to do with their fundamental worth and therefore bargain hunter investors quickly buy in creating the January rally.
Event that starts on the last day of December and ends on the fourth trading day of January--stock prices have historically tended to rise considerably. The January Effect is caused by year end selling for tax losses, recognizing capital gains, or effecting portfolio window dressing. Even though the sell off depresses the stocks, it has nothing to do with their basic worth. Bargain hunters may quickly buy in and thus, cause the January rally. See: Capital Gain; Technical Analysis
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.
The January effect (sometimes called "year-end effect") is a calendar effect wherein stocks, especially small-cap stocks, have historically tended to rise markedly in price during the period starting on the last day of December and ending on the fifth trading day of January. This effect is owed to year-end selling to create tax losses, recognize capital gains, effect portfolio window dressing, or raise holiday cash. Because such selling depresses the stocks but has nothing to do with their fundamental worth, bargain hunters quickly buy in, causing the January rally.