Stock Price and the Above Average Rates of Return. Low Price Anomaly on the Warsaw Stock Exchange
Stock Price and the Above Average Rates of Return. Low Price Anomaly on the Warsaw Stock Exchange

Summary/Abstract: The main aim of this paper is to verify whether the phenomenon of low price anomaly occurs in the case of Warsaw Stock Exchange. The following research hypothesis has been formulated: low-priced stocks provide higher returns than high-priced stocks. The author proposed to divide the group of stocks into subgroups determined by predefined unit prices. In the case of companies characterized by positive recommendations the difference between rates of return achieved by low and high-priced stocks (stocks up to 1 PLN and above 100 PLN) is significant. This anomaly increases with time.

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