Stock returns are inexplicably high during _____ .
A) Christmas season
B) Spring
C) tax season
D) January

Question

Quizplus · Accepted Answer

Stock returns are often inexplicably high during January, a phenomenon known as the "January Effect." This effect suggests that stock prices tend to increase in the first month of the year more than in other months. This is often attributed to the increase in buying which follows the sell-off in December, when investors engage in tax-loss harvesting to offset realized capital gains.

Stock Returns Are Inexplicably High During _____