Neglected firm effect
The tendency of firms that are neglected by security analysts to outperform firms that are the subject of considerable attention. |
Similar financial terms
Four-firm concentration ratioThe sum of the portions of sales, value added, assets, or employees held by the largest four firms in an industry. A measure of competitiveness according to the structural theory
Confirmation
A confirmation is a written acknowledgment of a trade, listing important details such as the date, the size of the transaction, the price, the spread and commission, and the amount of money involved.
Affirmative covenant
A bond covenant that specifies certain actions the firm must take.
Target firm
A firm that is the object of a takeover by another firm.
Small-firm effect
The tendency of small firms (in terms of total market capitalization) to outperform the stock market (consisting of both large and small firms).
Weekend effect
The common recurrent low or negative average return from Friday to Monday in the stock market.
Synergistic effect
A violation of value-additivity whereby the value of the combination is greater than the sum of the individual values.
Side effects
Effects of a proposed project on other parts of the firm.
P/E effect
That portfolios with low P/E stocks have exhibited higher average risk-adjusted returns than high P/E stocks.
Low price-earnings ratio effect
The tendency of portfolios of stocks with a low price-earnings ratio to outperform portfolios consisting of stocks with a high price-earnings ratio.
Calendar effect
The tendency of stocks to perform differently at different times, including such anomalies as the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.
Clientele effect
The grouping of investors who have a preference that the firm follow a particular financing policy, such as the amount of leverage it uses.
Coinsurance effect
Refers to the fact that the merger of two firms decreases the probability of default on either firm's debt.
Effective gross income
Normal annual income including overtime that is regular or guaranteed. The income may be from more than one source. Salary is generally the principal source, but other income may qualify if it is significant and stable.
Design Failure Mode and Effects Analysis (DFMEA)
An analytical technique used by a design responsible engineer/team as a means to assure, to the extent possible, that potential failure modes and, their associated causes/mechanisms have been considered and addressed.
January effect
Refers to the historical pattern that stock prices rise in the first few days of January. Studies have suggested this holds only for small-capitalization stocks. In recent years, there is less evidence of a January effect.
