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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

October Effect  

Definition 1.

A theory that postulates that stocks will tend to decline during the month of October.
 

Definition 2.

The perception that the stock market tends to do poorly in October. Although historically there has been a slight underperformance in October which most observers attribute to chance, the psychological effects of a few serious market crashes in October have kept the perception alive.
 
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