An abnormal return is the difference between the expected return and the actual return of a stock. A cumulative abnormal return (CAR) is the sum of the abnormal returns. The CAR is used to determine the effect that events such as lawsuits or buyouts have on stock prices. It is also helpful for determining how accurate the asset pricing model is in calculating the expected return.

Related information about cumulative abnormal return (CAR):

1. Abnormal return - Wikipedia, the free encyclopedia
   Trading-Glossary Cumulative abnormal return (CAR) Retrieved on July 18, 2007; ^ Brown, Stephen and Jerold Warner, 1985, "Using daily stock returns: the ...
    
2. What is cumulative abnormal return (CAR)? definition and meaning
   Definition of cumulative abnormal return (CAR): An abnormal return is the difference between the expected return and the actual return of a stock. A cumulative ...
    
3. Cumulative abnormal return (CAR) financial definition of Cumulative ...
   Sum of the differences between the expected return on a stock (systematic risk multiplied by the realized market return) and the actual return often used to ...
    
4. Cumulative abnormal return (CAR)
   Similar financial terms. Non-cumulative preferred stock. Preferred stock whose holders must forgo dividend payments when the company misses a dividend ...
    
5. Testing for Cumulative Abnormal Returns in Event Studies with the ...
   to the event day, and days from t = T1 + 1 to t = T2 represent event window days, again relative to the event day. The cumulative abnormal return (CAR) from day ...
    
6. CAR - Cumulative Abnormal Return (finance)
   Additionally, we sum these daily excess returns to obtain a cumulative abnormal return (CAR), which provides a more comprehensive measure of the event's ...
    
7. Cumulative abnormal return (CAR) Definition - NASDAQ.com
   Cumulative abnormal return (CAR): read the definition of Cumulative abnormal return (CAR) and 8000+ other financial and investing terms in the NASDAQ.com ...
    
8. Technology and Marketing Alliances, 1996 – 2003 - Grand Valley ...
   average cumulative abnormal return (CAR) for the period (-5, 5) is positive and significant at the conventional levels (2.57% according to the standard one factor ...