Trading done after the stock market closes at 4:00 Eastern Time is commonly referred to as what?

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 at 4:00 Eastern Time is commonly referred to as what?

Explanation:
Trading done after the stock market closes at 4:00 Eastern Time is called after-hours trading. This refers to transactions that occur outside the regular session, when exchanges are no longer officially open. In the U.S., the standard day runs 9:30 am to 4:00 pm ET, and after-hours trading begins once that session ends. It’s facilitated by electronic communication networks and other venues, but there’s usually less liquidity and wider bid-ask spreads, which can make prices more volatile. By contrast, pre-market trading happens before the regular session, regular trading hours describe the main active window, and mid-session trading isn’t a standard term for after-hours activity.

Trading done after the stock market closes at 4:00 Eastern Time is called after-hours trading. This refers to transactions that occur outside the regular session, when exchanges are no longer officially open. In the U.S., the standard day runs 9:30 am to 4:00 pm ET, and after-hours trading begins once that session ends. It’s facilitated by electronic communication networks and other venues, but there’s usually less liquidity and wider bid-ask spreads, which can make prices more volatile. By contrast, pre-market trading happens before the regular session, regular trading hours describe the main active window, and mid-session trading isn’t a standard term for after-hours activity.

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