The January Effect

question 16

Multiple Choice

The January effect

• A) largely disappeared after receiving attention in the 1980s.
• B) refers to the gap between futures prices and the prices of the underlying securities that occurs each January.
• C) was stronger during the 1980s than during previous decades.
• D) is the observation that stocks tend to be sold off in January.

---

Definitions:

Optional

Something that is not mandatory or compulsory; it is left to one's choice or preference.

Venue

The geographic district in which an action is tried and from which the jury is selected.

Geographic Area

Refers to a specific physical region or territory defined by natural or artificial borders.

Lawsuit

A legal action brought by one party against another in a court of law, typically seeking redress or enforcement of rights.