What Is After-Hours Trading on the Stock Market?
The advance in telecommunications has provided the individual investor with trading abilities previously available to large institutions and high net-worth individuals. This is the ability to buy and sell securities during the hours when the major exchange that lists the stock (the New York Stock Exchange or the Nasdaq) is closed. These major exchanges operate from 9:30 a.m. until 4 p.m., but by using the overnight system in place, it is possible to trade outside these hours. This ability comes at the risk of substantial loss of liquidity and market-making rules.
