Market anomaly

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search

A market anomaly (or market inefficiency) in a financial market is a price and/or rate of return distortion that seems to contradict the efficient-market hypothesis.[1][2]

The market anomaly usually relates to:

There are anomalies in relation to the economic fundamentals of the equity, technical trading rules, and economic calendar events.

Anomalies could be fundamental,[3] technical, or calendar related. Fundamental anomalies include value effect, small-cap effect (low P/E stocks and small cap companies do better than index on an average) and the low-volatility anomaly. Calendar anomalies involve patterns in stock returns from year to year or month to month, while technical anomalies include momentum effect.

References

  1. ^ "Investor Home - Anomalies". www.investorhome.com. Retrieved 2017-03-13. 
  2. ^ "Investor Home - Anomalies". www.investorhome.com. Retrieved 2017-03-13. 
  3. ^ "Investor Home - Fundamental Anomalies". www.investorhome.com. Retrieved 2017-03-13. 

External links

  • ANOMALIES AND MARKET EFFICIENCY
  • Financial Market Anomalies
Retrieved from "https://en.wikipedia.org/w/index.php?title=Market_anomaly&oldid=812779825"
This content was retrieved from Wikipedia : http://en.wikipedia.org/wiki/Market_anomaly
This page is based on the copyrighted Wikipedia article "Market anomaly"; it is used under the Creative Commons Attribution-ShareAlike 3.0 Unported License (CC-BY-SA). You may redistribute it, verbatim or modified, providing that you comply with the terms of the CC-BY-SA