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November/December 2017

After the Bell

It used to be that once the bell rang on the trading floor, stock trading was over for the day. But that changed once “after-hours” trading allowed investors to buy and sell outside of regular hours. If you are thinking about getting involved in after-hours trading, be aware of these risks.

  • You may not be able to access — or act on — quotes outside of the trading system your broker uses.

  • Fewer buyers and sellers may make trading more difficult. And some stocks don’t trade after hours.

  • Stock prices may fluctuate more than they do during the regular trading day. To avoid buying too high or selling too low, consider using a “limit” order, which will specify the price at which you want your trade executed.

  • You’ll be competing with large institutional investors who may have access to more investment information.

  • Computer delays could prevent your orders from being executed, including orders to change or cancel trades.



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