Home
Topics
IT Management
Business terms
Santa Claus rally

Definition

Santa Claus rally

Part of the Business terms glossary:

A Santa Claus rally (sometimes referred to as the Santa Claus effect or the December effect) is a sharp rise in stock prices that sometimes occurs around Christmas.

Various theories have been proposed to explain the Santa Claus rally, including the following:

Employees are investing their Christmas bonuses.
People are making investments before the end of the year for tax purposes.
Corporations are adjusting their holdings for a better appearance at the end of the year.
Wall Street is in a festive mood.
Pessimists are on holiday, leaving optimists to do the investing.

However, according to Investopedia.com, the most likely reason for the Santa Claus rally is an increase in share purchases made to escape paying the higher stock prices expected in the new year. A surge in stock prices early in the year is known as the January effect.

Continue reading about the Santa Claus rally:

> Yes, Virginia, there really is a Santa Claus… rally.

> Investopedia.com defines Santa Claus rally and other seasonal financial terms such as Elves, Christmas Tree and the Boston snow indicator.

This was last updated in December 2011

Posted by: Margaret Rouse

Related Terms

Definitions

authorized service provider (ASP)
- An authorized service provider (ASP) is an individual or an organization that is permitted to service products that are covered by warranties held by another entity. Service conducted by anyone oth... (SearchITChannel.com)
hosted services
- Hosted services are outsourced information technology (IT) systems and functions. A hosted service provider owns and oversees infrastructure, software and administrative tasks and makes the system ... (SearchITChannel.com)
VAR agreement (value-added reseller agreement)
- A VAR agreement is a legal contract between a manufacturer and a value-added reseller that specifies details of the rights and obligations of both parties. (SearchITChannel.com)

Glossaries

Business terms
- Terms related to business, including definitions about project management and words and phrases about human resources, finance and vertical industries.
Internet applications
- This WhatIs.com glossary contains terms related to Internet applications, including definitions about Software as a Service (SaaS) delivery models and words and phrases about web sites, e-commerce ...

Dig Deeper

People Who Read This Also Read...

Ask a Question. Find an Answer.Powered by ITKnowledgeExchange.com

Ask An IT Question

Get answers from your peers on your most technical challenges

Tech TalkComment

Share

Comments

Results

Contribute to the conversation

All fields are required. Comments will appear at the bottom of the article.

Back to top

More from Related TechTarget Sites

( View All TechTarget Sites )

Security
IT Channel
Financial and HR Applications
Windows Server
Data Center
Consumerization
CIO
Storage

Security

( Find Out More About This Site )
- computer forensics (cyber forensics)
  
  Computer forensics is the application of investigation and analysis techniques to gather and preserve evidence from a particular computing device in a way that is suitable for presentation in a court of law.
- multifactor authentication (MFA)
  
  Multifactor authentication (MFA) is a security system in which more than one form of authentication is implemented to verify the legitimacy of a transaction... (Continued)
- security information and event management (SIEM)
  
  Security information and event management (SIEM) is an approach to security management that seeks to provide a holistic view of organization’s information technology (IT) security.
IT Channel

( Find Out More About This Site )
- Apple Authorized Service Provider (Apple ASP)
  
  An Apple Authorized Service Provider (Apple ASP) is an individual or organization that can legally service Apple products although their warranties are held by other entities. Service by anyone other than an authorized service provider (ASP) will render a product's warranty void.
- authorized service provider (ASP)
  
  An authorized service provider (ASP) is an individual or an organization that is permitted to service products that are covered by warranties held by another entity. Service conducted by anyone other than an authorized service provider will generally render a warranty void.
- hosted services
  
  Hosted services are outsourced information technology (IT) systems and functions. A hosted service provider owns and oversees infrastructure, software and administrative tasks and makes the system available to clients, usually over the Internet.
Financial and HR Applications

( Find Out More About This Site )
- Automatic Data Processing Inc. (ADP)
  
  Automatic Data Processing Inc. (ADP) is a global business outsourcing services provider headquartered in Roseland, N.J.
- Kronos Inc.
  
  Kronos Inc. is a provider of workforce management software and associated services headquartered in Chelmsford, Mass.
- BPaaS (Business Process as a Service)
  
  Business Process as a Service (BPaaS) is a form of business process outsourcing (BPO) that employs a cloud computing service model.
Windows Server

( Find Out More About This Site )
- Microsoft FIM (Microsoft Forefront Identity Manager)
  
  Microsoft Forefront Identity Manager (FIM) is a self-service identity management software suite.
- Microsoft Software Assurance (SA)
  
  Microsoft Assurance Software is a program that was introduced in 2002 to help users with the maintenance of Microsoft Windows, Microsoft Office and applications for the server and desktop.
- DCPromo (Domain Controller Promoter)
  
  DCPromo (Domain Controller Promoter) is a tool in Active Directory that installs and removes Active Directory Domain Services and promotes domain controllers.
Data Center

( Find Out More About This Site )
- Opscode Chef
  
  Chef is an open-source systems management and cloud infrastructure automation framework created by Opscode. Devops can use Chef to deploy and manage servers and applications in-house and in the cloud.
- Zabbix
  
  Zabbix is an open-source tool designed to monitor networks, servers, appliances and other hardware through a Linux-based server, which communicates to the native agents that are available for many operating systems, including Linux, UNIX and Windows.
- bare-metal provisioning
  
  Bare-metal provisioning is the process of installing an operating system (OS) or Type 1 hypervisor directly on a computer's hardware.
Consumerization

( Find Out More About This Site )
- SoMoClo (social, mobile and cloud)
  
  SoMoClo (social, mobile and cloud) is the convergence of collaborative, on-the-go technologies that allow users to access data and applications from anywhere at any time.
- SoLoMo (social, local and mobile)
  
  SoLoMo (social, local and mobile) is a term representing the convergence of collaborative, location-based and on-the-go technologies, primarily used for marketing and discovery purposes.
- Samsung Galaxy Note (Samsung GN)
  
  Samsung Galaxy Note is a large Android smartphone with a touchscreen and stylus that is manufactured by Samsung Electronics.
CIO

( Find Out More About This Site )
- Vine (Vine app)
  
  Vine is a free mobile application that enables users to record and share an unlimited number of short, looping video clips with a maximum length of six seconds.
- Google Wallet
  
  Google Wallet is a mobile payment system developed by Google that allows smartphone users to store debit and credit card information for online and in-store purchases.
- sunk cost (SC)
  
  A sunk cost is money that has already been spent and cannot be recovered. Logic dictates that because sunk costs will not change -- no matter what actions are taken -- they should not play a role in decision-making. Emotionally, however, the more someone invests time, effort and money on something, the harder it becomes to leave it and move on.
Storage

( Find Out More About This Site )
- I/O contention (input/output contention)
  
  I/O contention (input/output contention), occurs when virtual machines compete for I/O resources because there is a limited storage bandwidth.
- erasure coding
  
  Erasure coding (EC) is a method of data protection in which data is broken into fragments, expanded and encoded with redundant data pieces, and stored across a set of different locations, such as disks, storage nodes or geographic locations.
- pNFS (Parallel NFS)
  
  The Parallel Network File System (pNFS) is part of the NFS v4.1 protocol that allows compute clients to access storage devices directly and in parallel.

All Rights Reserved,Copyright 1999 - 2013, TechTarget