Energies
To better understand what after trading hours are, it is best to first explain “trading hours.” Trading hours refer to the time when the buying and selling of stocks happens over major exchanges such as the New York Stock Exchange or NASDAQ.
They are usually open from 9:30 a.m. to 4:00 p.m. EST. When major news and events take place, some traders might continue to trade after the market closes, until around 8:00 p.m. EST.
If a company issues a new stock after trading hours, traders will react quickly to major news or events and can invest in it immediately. However, they need to be cautious, as after-hours trading entails significant price volatility due to lower trading volumes.
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