23. \"Late trading\" refers to: (2 points) Trading which occurs during the stock

Question

23. "Late trading" refers to: (2 points) Trading which occurs during the stock market's "extended session" in the evening hours Trading which occurs after the last of the quarter but is shown on the records as if the trade had taken place during the previous quarter. Trading which occurs after 4:00pm in order to take advantage of the 4:00pm determination of the net asset value of a mutual fund. a. b. c. d. Trading w hich occurs after the market price has already fully responded to new market-sensitive information and therefore reflects a missed opportunity to profit.

Explanation / Answer

Late trading refers to trading That is carried out after the standard national exchange is closed i.e. after 4 P.M . Mutual funds usually compute the NAV at the close of a trading day for the next day's trade. A rader buying or selling shares after this closing time i. e. after Net asset value is calculated, they can still get it at that day's prices which is based on the prior NAV already determined as of that day, and thus can gain unfair advantage over the other traders.

Answer- option C

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