After-Hours Trading (AHT)

After-Hours Trading (AHT) refers to the buying and selling of securities outside of the regular trading hours of major stock exchanges, such as the New York Stock Exchange (NYSE) and Nasdaq. Regular trading hours are typically from 9:30 AM to 4:00 PM Eastern Time, but after-hours trading takes place from 4:00 PM to 8:00 PM Eastern Time. During this period, investors can continue to trade stocks, though with lower liquidity and higher volatility, as fewer participants are involved.

Example

If a company announces strong quarterly earnings after the market closes, an investor might buy shares during after-hours trading to capitalize on the anticipated price increase.