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Securities, such as stocks and bonds, may change hands on organized markets and exchanges after regular business hours, in what is known as the after-hours market.
These electronic transactions explain why a security may open for trading at a different price from the one it closed at the day before.
There's also trading in benchmark indexes such as Standard & Poor's 500-stock Index (S&P 500) and the Dow Jones Industrial Average (DJIA) before US stock markets open. The level of activity and the direction the trading - up or down - is widely interpreted as an early indicator of what's likely to happen in the market during the day.Yahoo Finance - Cite This Source - This Definition
- Browse Related Terms: After-hours market, American depositary share (ADS), Bellwether, Composite trading, DIAMONDs, Electronic Data Gathering, Analysis, and Retrieval System (EDGAR), Listed security, Listing requirement, Nikkei Stock Average, Options Clearing Corporation (OCC), OTC Bulletin Board (OTCBB), Regional exchange, Restricted security, Unlisted security