Weekend Effect

Posted in Finance, Accounting and Economics Terms, Total Reads: 961

Definition: Weekend Effect

Weekend effect is a stock market effect which says that the Monday stock prices are lower than that on the Friday before. The underlying assumption is that sometimes it takes a weekend(which is off for trading) to understand the issues and news pertaining to a stock and the reaction comes out on Monday.

The main thing is that when shares are traded on a Monday, it involves sentiment of Saturday, Sunday and then Monday. Because 4 days before Friday were all working means the trading was more rational. Break of 2 days plus Friday evening changes the sentiments revolving around reports and news pertaining to stocks and market in general.

Browse the definition and meaning of more terms similar to Weekend Effect. The Management Dictionary covers over 7000 business concepts from 6 categories.

Search & Explore : Management Dictionary

Share this Page on:
Facebook ShareTweetShare on Linkedin