Late trading

Late trading is trading that executes after the market closes, while charging the share price of when the market was stil open. This form of trading may be illegal, and is distinct from official after-hours trading.

Mutual funds

In the mutual fund context, late trading involves placing orders for mutual fund shares after the close of the stock market, 4:00 p.m for the New York Stock Exchange, but still getting that day's closing price, rather than the next day's opening price. The price of mutual funds is usually set only once per day, so intraday prices are not applicable. [1]

Controversy

In the United States this practice is illegal under SEC rules but many mutual fund managers appear to have allowed exceptions for certain hedge funds and other favored investors who were able to obtain that day's price, notwithstanding that their orders were received after-hours.[2]

gollark: 1-bit? Wow.
gollark: If you make it scriptable with Lua make sure to make it able to run potatOS.
gollark: Markdown... how does it even.
gollark: Oops, I did an infinite recursion.
gollark: Because computers weren't fast enough over most of that 5000 years, silly.

See also

References
  1. "How to Trade ETFs TD Ameritrade". www.tdameritrade.com. Retrieved 17 June 2019.
  2. Woodard, Dustin. "Bear Stearns Settlement on Fund Trading Scandal". Mutual Funds at About. Archived from the original on 2008-03-22. Retrieved 2008-06-23.


This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.