The January effect has often been attributed to:
A) New Year's resolutions.
B) the feeling associated with a new calendar year.
C) tax loss selling.
D) earnings announcements.
E) corporate tax years.

Question

Quizplus · Accepted Answer

The January effect is often attributed to tax loss selling, as investors may sell losing positions in order to realize tax losses before the end of the calendar year. This selling can temporarily depress stock prices, leading to a potential buying opportunity for investors in the new year.

The January Effect Has Often Been Attributed To