Market anomaly

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

The market anomaly usually relates to:

• Structural factors, such as unfair competition, lack of market transparency, regulatory actions, etc.
• Behavioral biases by economic agents (see behavioral economics)

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 and small-cap effect (low P/E stocks and small cap companies do better than index on an average). Calendar anomalies involve patterns in stock returns from year to year or month to month, while technical anomalies include momentum effect.

References

1. ^ Market anomaly
2. ^ Historical Stock Market Anomalies
3. ^ Fundamental Stock Market Anomalies

External links

• ANOMALIES AND MARKET EFFICIENCY
• Financial Market Anomalies

This economic theory related article is a stub. You can help Wikipedia by expanding it.v · Categories: Financial markets Economic efficiency Economic theories Financial economics Behavioral finance Economic theory stubs Wikimedia Foundation. 2010. Игры ⚽ Поможем написать реферат Jessica Deglau Michael Naimark Look at other dictionaries: Market timing — is the strategy of making buy or sell decisions of financial assets (often stocks) by attempting to predict future market price movements. The prediction may be based on an outlook of market or economic conditions resulting from technical or… …   Wikipedia Market capitalization — (often market cap) is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding (shares that have been authorized, issued, and… …   Wikipedia Market sentiment — is the general prevailing attitude of investors as to anticipated price development in a market. This attitude is the accumulation of a variety of fundamental and technical factors, including price history, economic reports, seasonal factors, and …   Wikipedia Market manipulation — describes a deliberate attempt to interfere with the free and fair operation of the market and create artificial, false or misleading appearances with respect to the price of, or market for, a security, commodity or currency.[1] Market… …   Wikipedia Anomaly — An anomaly is any occurrence or object that is strange, unusual, or unique. In the following particular contexts it may refer to:Astronomy* Eccentric anomaly, intermediate value used to compute the position of a celestial object as a function of… …   Wikipedia Market trend — Statues of the two symbolic beasts of finance, the bear and the bull, in front of the Frankfurt Stock Exchange. A market trend is a putative tendency of a financial market to move in a particular direction over time.[1] These trends are… …   Wikipedia Market maker — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia Market depth — In finance, market depth is the size of an order needed to move the market a given amount. If the market is deep, a large order is needed to change the price. Market depth closely relates to the notion of liquidity, the ease to find a trading… …   Wikipedia Market Intelligence — (often contracted to MARKINT) is a relatively new intelligence discipline that exploits open source information gathered from global markets. It relies solely on publicly available information such as market prices and ancillary economic and… …   Wikipedia Anomaly — A term describing the incidence when the actual result under a given set of assumptions is different from the expected result. An anomaly provides evidence that a given assumption or model does not hold in practice. The model can either be a… …   Investment dictionary 18+ © Academic, 2000-2024 Contact us: Technical Support, Advertising Dictionaries export, created on PHP, Joomla, Drupal, WordPress, MODx. Mark and share Search through all dictionaries Translate… Search Internet Share the article and excerpts Direct link … Do a right-click on the link above and select “Copy Link”