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1. January Effect


Tendency of the stock market to rise between December 31 and the end of the first week in January. The January Effect occurs because many investors choose to sell some of their stock right before the end of the year in order to claim a capital loss for tax purposes. Once the tax calendar rolls over to a new year on January 1st these same investors quickly reinvest their money in the market, causing stock prices to rise. Although the January Effect has been observed numerous times throughout history, it is difficult for investors to profit from it since the market as a whole expects it to happen and therefore adjusts its prices accordingly.


See Also

calendar effect, Santa Claus rally


2. Jensen index


An index that uses the capital asset pricing model to determine whether a money manager outperformed a market index.

3. joint


Pertaining to multiple parties on the same side of an agreement or transaction.

4. joint account


Any account owned by two or more people.

5. joint and several liability


An obligation for which multiple individuals are liable for payment.

6. joint and survivor annuity


An annuity issued on two individuals under which payments continue in whole or in part until both individuals die. also called joint life annuity.

7. joint life annuity


An annuity issued on two individuals under which payments continue in whole or in part until both individuals die. also called joint and survivor annuity.


See Also

life annuity, single-life annuity


8. joint mortgage


A mortgage with multiple mortgagors.

9. joint ownership


Situation in which two or more people share ownership of property, securities, or rights.

10. joint return


A U.S. income tax filing status that can be used by a married couple, in which income and deductions for the two individuals are combined.


See Also

separate tax returns, married filing jointly, joint tax return


11. Joint Stock Company


A company which has some features of a corporation and some features of a partnership.

12. joint tax return


see joint return.

13. joint tenancy with right of survivorship


Ownership of property by two or more people in which the survivors automatically gain ownership of a decedent's interest.


See Also

tenancy, survivorship


14. joint venture


A contractual agreement joining together two or more parties for the purpose of executing a particular business undertaking. All parties agree to share in the profits and losses of the enterprise.


See Also

off-balance-sheet financing


15. joint will


One will covering both husband and wife.

16. jointly and severally


A type of agreement that establishes the responsibility for selling the securities in an underwriting. Members of an underwriting group agree to buy a certain amount of the new issue and to share liability for the obligations of the other members of the group.


See Also

severally but not jointly, joint and several liability


17. Jonestown defense


An extreme kind of poison pill in which a company trying to avoid a hostile takeover will use tactics so extreme that they threaten the company's ability to survive. The term refers to the 1978 Jonestown massacre.

18. journal


An accounting book of original entry where transactions are initially recorded.

19. judgment


A formal decision by a court of law.


See Also

judgment lien


20. judgment lien


A lien on the property of a debtor resulting from a court's judgment.


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