The January effect refers to the fact that
A)most stock market crashes have occurred in January.
B)stock prices tend to fall in January.
C)stock prices have historically experienced abnormal price increases in January.
D)the football team winning the Super Bowl accurately predicts the behavior of the stock market for the next year.

Question

Quizplus · Accepted Answer

The January effect refers to the historical phenomenon of stock prices experiencing abnormal increases in January, possibly due to tax-related factors or investors buying back stocks after selling them for tax-loss harvesting purposes at the end of the previous year. This effect is not related to stock market crashes or the performance of football teams.

The January Effect Refers to the Fact That