P-E Effect: That portfolios with low P-E stocks exhibit higher average risk-adjusted returns than those with high P-E stocks. Related: Value manager.

 

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P-E Effect: That portfolios with low P-E stocks exhibit higher average risk-adjusted returns than those with high P-E stocks. Related: Value manager.

Limited Effects Theory: A type of communication theory (e.g., social learning theory, vicarious catharsis theory) that regards media as having conditional influences on the viewer: due to intervening variables, the . . . View Full Definition

Low Price-Earnings Ratio Effect: The tendency of portfolios of stocks with a low price-earnings ratio to outperform portfolios of stocks with high price-earnings ratios.

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.

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

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

Lowest-Observed-Adverse-Effect Level (LOAEL): The lowest tested dose of a substance that has been reported to cause harmful (adverse) health effects in people or animals.

Magnus Effect: The effect on a spinning cylinder or sphere moving through a fluid, in which force acts perpendicular to the direction of motion and to the direction of spin. This is used to advantage in ba . . . View Full Definition

Network Effect: The phenomenon whereby a service becomes more valuable as more people use it, thereby encouraging ever-increasing numbers of adopters.

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