What is “pre-market” and “post-market” in stock exchange? Why do stocks change their prices outside of trading hours?

230 views

What is “pre-market” and “post-market” in stock exchange? Why do stocks change their prices outside of trading hours?

In: 1

3 Answers

Anonymous 0 Comments

Extended hours trading occurs off the stock exchanges through other means ([electronic communication networks](https://www.sec.gov/news/studies/ecnafter.htm)).

The biggest warning is that because of the lower trading volume during these hours, price volatility and bid/ask spreads can sometimes can be large (hence why “market” order types aren’t offered)

You are viewing 1 out of 3 answers, click here to view all answers.