Trading done after the stock market closes is most commonly referred to as which term?

Study for the Finance and Investment Challenge Test. Approaches include flashcards and multiple-choice questions with hints and explanations. Ready yourself to ace the exam!

Multiple Choice

Trading done after the stock market closes is most commonly referred to as which term?

Explanation:
Trading done after the stock market closes is called after-hours trading. This period begins once the regular trading session ends and trades are conducted on electronic networks or through brokers outside of normal hours. It's different from pre-market trading, which happens before the market opens. While extended-hours trading is a broad term some use to cover any trading outside the regular session, the specific after-hours term refers to activities after the close. Expect thinner liquidity and potentially wider spreads during these times, and remember that price moves can be more volatile as news and events released after the close can impact prices when the market reopens.

Trading done after the stock market closes is called after-hours trading. This period begins once the regular trading session ends and trades are conducted on electronic networks or through brokers outside of normal hours. It's different from pre-market trading, which happens before the market opens. While extended-hours trading is a broad term some use to cover any trading outside the regular session, the specific after-hours term refers to activities after the close. Expect thinner liquidity and potentially wider spreads during these times, and remember that price moves can be more volatile as news and events released after the close can impact prices when the market reopens.

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