Which of the following characteristics apply to trading before and after regular hours?
I. Most after hours trades match a bid price to a corresponding offer price.
II. Most brokerage firms require individual investors to place only market orders for after- hours trades.
III. Electronic Communications Networks (ECNs) play a key role in after hours trading.
IV. After-hours trading begins at 4:00 P.M. and ends at 9:30 A.M. eastern time.

Question

Quizplus · Accepted Answer

I, III, and IV are correct. After-hours trades typically involve matching a bid price to an offer price, ECNs are crucial for facilitating after-hours trading, and the specified times are generally accurate for the U.S. stock market. II is incorrect because brokerage firms often allow both market and limit orders for after-hours trading, not just market orders.

Which of the Following Characteristics Apply to Trading Before and After