Related Words

Neglected Firm Effect: The tendency of firms that are neglected by security analysts to outperform firms that are the subject of considerable attention.

Intrinsic Value Of A Firm: The present value of a firm's expected future net cash flows discounted by the required rate of return.

Inverse Barometer Effect: The inverse response of sea level to changes in atmospheric pressure. A static reduction of 1.005 mb in atmospheric pressure will cause a stationary rise of 1 cm in sea level.

International Fisher Effect: States that the interest rate differential between two countries should be an unbiased predictor of the future change in the spot rate.

January Effect: Each year, the stock market tends to increase slightly in value between December 31 and the end of the first week of January. Known as the January Effect, this rise starts when investors sel . . . View Full Definition

Intermittency Effect: States that, a number of short, separate exposures will not produce the same photographic result when combined as a single exposure of equivalent total duration.

Inductive Effect: An inductive effect is the polarization of a chemical bond caused by the polarization of an adjacent bond. (Field effects are polarization caused by nonadjacent bonds).

Information Content Effect: The correlation between predicted and actual stock returns, sometimes used to measure the contribution of a financial analyst. An IC of 1.0 indicates a perfect linear relationship between pr . . . View Full Definition

Kostinsky Effect: Development effect in which dense image points are inclined to move apart, relative to each other, and light image points to move together, relative to each other. This occurs because develo . . . View Full Definition

Lake Effect Snow: Snow showers that are created when cold dry air passes over a large warmer lake, such as one of the Great Lakes, and picks up moisture and heat.