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Friday, February 3rd 2012 - 06:12:08 pm |
Glossary of Terms
(Some abbreviations are for communication on the Trading Room)
January effect – is the tendency of the stock market to rise between December 31st and through January. The theory of the January Effect is that 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. Also referred to as tax loss selling.
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