ANOMALIES refer to situations when a security or group of securities

performs contrary to the notion of efficient markets, where security

prices are said to reflect all available information at any point in time.
With the constant release and rapid dissemination of new information,
sometimes efficient markets are hard to achieve and even more
difficult to maintain. There are many market anomalies; some occur
once and disappear, while others are continuously observed
Calendar Effects
Anomalies that are linked to a particular time are called calendar
effects. Some of the most popular calendar effects include
the weekend effect, January effect.
Why Do Calendar Effects Occur?
Unfortunately, this is the case for many calendar anomalies. The
January effect may have the most valid explanation. It is often
attributed to the turn of the tax calendar; investors sell off stocks at
year's end to cash in gains and sell losing stocks to offset their gains
for tax purposes. Once the New Year begins, there is a rush back into
the market and particularly into small-cap stocks.
Conclusion
Anomalies reflect inefficiency within markets. Some anomalies occur
once and disappear, while others occur repeatedly. History is no
predictor of future performance, so you should not expect every
Monday to be disastrous and every January to be great, but there also
will be days that will "prove" these anomalies true!

'January Effect'
A general increase in stock prices during the month of January. This rally is
generally attributed to an increase in buying, which follows the drop in price that
typically happens in December when investors, seeking to create tax losses to
offset capital gains, prompt a sell-off.
The January effect is said to affect small caps more than mid or large caps. This
historical trend, however, has been less pronounced in recent years because the
markets have adjusted for it. Another reason the January effect is now
considered less important is that more people are using tax-sheltered retirement
plans and therefore have no reason to sell at the end of the year for a tax loss.

'Weekend Effect'
A phenomenon in financial markets in which stock returns on Mondays are often
significantly lower than those of the immediately preceding Friday. Some
theories that explain the effect attribute the tendency for companies to release
bad news on Friday after the markets close to depressed stock prices on
Monday. Others state that the weekend effect might be linked to short selling,
which would affect stocks with high short interest positions. Alternatively, the
effect could simply be a result of traders' fading optimism between Friday and
Monday.
The weekend effect has been a regular feature of stock trading patterns for
many years. For example, according to a study by the Federal Reserve, prior to
1987 there was a statistically significant negative return over the weekends.
However, the study did mention that this negative return had disappeared in the
period from post-1987 to 1998. Since 1998, volatility over the weekends has
increased again, and the phenomenon of the weekend effect remains a much
debated topic.

Attributes and anomalies

Attributes
Different financial instruments have different attributes. The investor should
make investment depending on its nature. The main four attributes which an investor
should consider are:

Safety- An investor always looks for the safety factor in his investment. The risk may
be minor or a major one. Highest safety is offered by bank fixed deposits. But there are a
variety of options in low safe products too. Examples include real estate or stock trading.

Returns risk and returns are always parallel to each other. When there are low
returns, always low risks are involved and vice versa.

Liquidity the measure of ease of converting financial instruments into cash is known
as liquidity. Lowest liquidity is offered by real estate. Financial instruments cannot be
converted into cash easily.

Transparency the attribute of transparency is highly valuable. If the exchanges are

transparent, the investor exactly knows the quality and purchase value.

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Anomalies
Anomalies play a very unique role in financial economics. Earlier it was used to depict EMH
and CAPM deviations. But in recent years it fits more into behavioral finance. There are
thousands of investors who constantly hunt extra performance. These anomalies are
present in the stock market and many investors are fascinated towards it. But
these anomalies dont remain constant. They can appear, re appear or even disappear
without any warning. Some well known anomalies are listed below:
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your assignment help, homework help within the deadline.

January effect this is a well known anomaly. The stocks which had underperformed in
the years fourth quarter tend to outperform in the markets in January.

Days of the week this anomaly is hated by the supporters of efficient market
supporters. This anomaly doesnt make sense and it isnt true. Even though it has a huge
discrepancy, it is persistent.