| Summary/Abstract |
In recent years, terrorist organizations have made considerable progress in their operations and in the technology they employ by using unguided rockets. Such developments are amplified in the case of Israel, where they pose a clear and present danger to the country’s population centers. This article examines how the firing of unguided rockets at Israel impacts the capital market and whether such impact is permanent or transitory. Having examined firing events based on categorical characteristics of the Terror Index, the article detects a negative correlation between the severity of the event, the range of the trajectories, the number of fatalities and wounded, and index returns. Similarly, it was observed that only in the events accompanied by low rocket-firing rates were the capital markets permanently affected.
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