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"Discovery Files" Features from the National Science Foundation
"Pronounced Profits"
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HOW DO YOU SPELL "I-P-O"? THE "DISCOVERY FILES": NEW ADVANCES IN SCIENCE AND ENGINEERING, FROM THE NATIONAL SCIENCE FOUNDATION. THERE ARE MANY UNSEEN FACTORS THAT AFFECT THE PERFORMANCE OF A STOCK--ESPECIALLY DURING ITS I-P-O, OR INITIAL PUBLIC OFFERING. RESEARCHERS AT PRINCETON HAVE UNCOVERED A HUMAN-BEHAVIOR PATTERN THAT HAS TO DO WITH THE SUCCESS OF AN I-P-O IN RELATION TO ITS NAME AND STOCK SYMBOL. IT SEEMS THAT NAMES AND SYMBOLS THAT ARE EASILY PRONOUNCED ACTUALLY PERFORM SUBSTANTIALLY BETTER SOON AFTER THEIR I-P-O. PRONOUNCED PROFITS? THE THEORY WAS TESTED AGAINST PERFORMANCE OF I-P-O'S ON THE NEW YORK AND AMERICAN STOCK EXCHANGES. THE SCIENTISTS SAY THAT, ON AVERAGE, AN INVESTMENT OF ONE-THOUSAND DOLLARS IN THE 10 MOST-EASILY-PRONOUNCED NAMES AND SYMBOLS WOULD INITIALLY YIELD 333 DOLLARS MORE PROFIT THAN IF YOU INVESTED IN THE 10 LEAST-FLUENT NAMES. THEY CAUTION THAT THIS STUDY IS LESS ABOUT SUREFIRE INVESTING OR ECONOMICS--AND MORE ABOUT THE PSYCHOLOGY BEHIND THE CHOICES WE MAKE. THE "DISCOVERY FILES" COVERS PROJECTS FUNDED BY THE GOVERNMENT'S NATIONAL SCIENCE FOUNDATION: FEDERALLY SPONSORED RESEARCH BROUGHT TO YOU BY YOU! LEARN MORE AT "N-S-F"-DOT-GOV.
For additional "Discovery Files" features from the National Science Foundation, click here.
