After the Bell - Explained
What is After the Bell Trading?
Written by J. Mance Gordon
Updated at April 23rd, 2024
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What is After the Bell?
The bell is a term that describes the closing time of a regular (normal) trading session, at this time, traders buy and sell stock in the market, and companies also release earning updates, give reports and engage in other activities during this period. After the bell refers to news releases, earnings reports, announcements and conferences held my companies after the stock market has closed.
How is After the Bell Used?
According to tradition, the New York Stock Exchange (NYSE) jingles a bell that signals the opening and closing of a trading session. After the bell refers to activities that occur after the close of a trading session/day. When a normal trading session or the stock market is closed, investors are disabled from buying or selling stock in the market, no order can be placed at this period. Announcements, earning reports, and releases made by companies after the bell are used in the stock market on the next trading day. The participation of trader, volume of stock that will trade and opening price in the stock market is dependent on the kind of news, releases, and announcements made by the companies for instance when positive announcements are made, a surge can occur in the next trading day.
Closing Bell
The closing bell at the New York Stock Exchange (NYSE) rings at 4:00 p.m. eastern standard time. At this time, traders are meant to close all activities for the trade. The closing bell at NYSE has been changed as technical advancements emerged, between 1870 and 1903, NYSE used a gong that was traditionally rand by an individual. After 1903, a brass bell was introduced at NYSE which was electronically controlled rather than the traditional gong that was rung by individuals. Other exchanges such as NASDAQ also have their ways of signaling the close of a trading day. In addition to national exchanges, organizations industries such as the media and others have begun to use a closing bell and assigned special meanings. When certain activities occur after the bell such as companies releasing their earnings reports, news releases, updates and announcements, they are called after the bell.