Wikipedia:
cumulative abnormal return
In finance, cumulative abnormal return (CAR) is the build up of the the difference between the expected return of a security and the actual
return. It is the sum of all abnormal returns
up to time 
. If no "event"
occurs then CAR equals zero.
Events can include mergers, dividend announcements, company earning announcements, interest rate increases, lawsuits, etc. all which can contribute to a cumulative abnormal return.[1] Events in finance can typically be classified as occurrences or information that have not already been priced into the market.
See also
References
- ^ Trading-Glossary Cumulative abnormal return (CAR) Retrieved on July 18, 2007
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