After Hours Stock Quotes
By: Anne Durrell
Highly
successful stock market investors discover early that
after hours stock quotes can provide them with a foremost indicator for the next-trading day's action as well as providing them with tremendous insight to
the global market's trading movements as those particular markets begin within a few hours of the close involved in the U.S. after-hours market.
Also, ever since 1985, the normal
stock market has held their trading hours from 9:30 a.m. to 4:00 p.m. However, the institutional investors such as banks, those holding funds such as retirement or pension funds as well as hedge funds and mutual funds, and even insurance companies, have been allowed to participate in what's known as after hours trading, sometimes referred to as late trading. This finally led to
after hours stock quotes.
These are organizations with large pools of money of course, and are considered to be high net-worth investors. When the Electronic Communications Networks (ECNs), an
alternative trading system, came into being the prospect of after hours trading was then allowed and it began to occur on a much larger amount and wider scale.
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The rules for voluntary participation in the Electronic Communications Networks allows these institutional investors to actually trade from 8 a.m. to 9:30 a.m. in what's referred to as the
Pre-Market trading, then they can trade again in the After Hours Market trading which runs from 4 p.m. to 6:30 p.m.
Most of these trades and gatherings offer less liquidity than the regular market, and very often they create very
inferior stock prices. That particular market has also been much more volatile. Because the participation is limited, the prices seem to move much more quickly.
Investors are told to use "limit" orders, which means that there are limits placed on either the buy or sell orders.
After hours stock quotes from NASDAQ are delayed by 15 minutes. Investors do well to analyze the current trading dynamics in the after-hours market.
The U.S. Securities and Exchange Commission through the Division of
Market Regulations performed a study on the after-hours marketing, and said that there was a need to outline recent initiatives in order to improve transparency and also to extend essential investor protections as well as market integrity measures that should be added to this particular environment.
Thus this practice is no longer simply giving an insight to investors to the global market's
trading movements. However, after hours stock quotes are still available, from the NYSE and NASDAQ, and the practice continues, of course.
Numerous Rules and Regulations have been passed since the creation of Electronic Communications Networks (ECNs), as an
alternative trading system, and as problems arise, there will undoubtedly be more Rules and Regulations in relation to after hours stock quotes. However, because it has actually created much greater integrity, as well as security standards, it's all been said to be good for investors.
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