The January effect concerns:
A)large cap stocks.
B)mid-cap stocks.
C)small cap stocks.
D)foreign stocks.

Question

Quizplus · Accepted Answer

The January effect is a phenomenon in which small-cap stocks tend to outperform large-cap stocks in the month of January. This trend is believed to be driven by tax-loss harvesting by investors, which creates selling pressure on small-cap stocks in December and leads to underperformance. In January, this pressure eases off, allowing small-cap stocks to rebound. Therefore, the best choice is C - small-cap stocks.

The January Effect Concerns