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Trading Terms

January Effect

As we delve into the realm of finance, it is important to understand the concept of the "January Effect". This phenomenon refers to the observed trend of securities prices bouncing back in January, following a decline due to tax-related selling at the end of the previous year. This is attributed to investors taking advantage of tax benefits by selling off securities at a loss. Such knowledge can prove useful in making informed investment decisions.
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Investments that provide regular, fixed payments, such as bonds and treasury bills.
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