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Weekend Effect
- The weekend effect is a theory, which predicts that the stock
markets will not open lower on Monday compared to the closing rates
on the Friday before. Often companies wait until the stock markets are
closed to reveal positive or negative news. Their hope is that the company
results will not have a bad effect on the stock listings, and releasing
news after closing of the Stock Exchange in every way will prevent that
for the weekend. Usually news of companies in general will have a milder
effect on the opening rates on Monday, this way they hope not to loose
too much points in order to keep the company's value as is.
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