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Literary meaning of an anomaly is a strange or unusual occurrence. The word anomaly refers to scientific
and technological matters.Anomalies are the indicator of inefficient markets, some anomalies happen only once and vanish, while
others happen frequently, or continuously defined market anomalies as “an
anomaly is a deviation from the presently accepted paradigms that is too widespread to be ignored, too
systematic to be dismissed as random error, and too fundamental to be accommodated by relaxing the
normative system.” Anomalies can be divided into three basic
1.Fundamental anomalies - Fundamental anomalies include Value anomalies and small cap effect, Low Price to Book,high dividend
yield, Low Price to Sales (P/S),Low Price to Earnings (P/E)
2.Technical anomalies- "Technical Analysis" includes no. of analyzing techniques use to forecast future prices of stocks on the
basis of past prices and relevant past information. Commonly technical analysis use techniques including
strategies like resistance support, as well as moving averages.
3.Calendar or seasonal anomalies - Calendar anomalies are related with particular time period i.e. movement in stock prices from day to day,
month to month, year to year etc .these include weekend effect, turn of the month effect, year-end effect etc
Here is the complete answer! Please let me know if you need any clarification. Please best with a 5*. Thank you and Godbless!!!
Aug 7th, 2015
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