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>From Wikipedia, the free encyclopedia 

The January Effect is a calendar-related anomaly in the financial market where 
financial security prices increase in the month of January. This creates an 
opportunity for investors to buy stock for lower prices before January and sell 
them after their value increases.

Therefore, the main characteristics of the January Effect are an increase in 
buying securities before the end of the year for a lower price, and selling 
them in January to generate profit from the price differences.

The January Effect was first observed in the early 1980s by Donald Keim who, at 
the time, was a graduate student at the University of Chicago. It is the 
observed phenomenon that since 1925, small stocks have outperformed the broader 
market in the month of January, with most of the disparity occurring before the 
middle of the month.


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