market anomalies

What Is Meant By Market Anomalies?

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What Is Meant By Market Anomalies? Market anomalies are distortions in returns that contradict the efficient market hypothesis What are market anomalies examples? 1. Small Firms Tend to Outperform. January Effect. Low Book Value. Neglected Stocks. Reversals. The Days of the Week. Dogs of the Dow. The Bottom Line. What are market anomalies and how

Why Do Market Anomalies Exist?

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Why Do Market Anomalies Exist? This anomaly follows a company announcement and is caused by the market gradually adjusting to new information. In theory, if markets were entirely efficient, then company earnings announcements would cause an immediate shift in prices as the report is instantly factored into the market price. Why do market anomalies occur?