Quick Definition

Pre-market trading refers to the buying and selling of stocks that occurs before the official opening of the stock market.

Examples

• 1An investor decides to buy shares of a tech company at 6 AM EST, based on overnight news about a successful product launch.
• 2A trader sells shares of an automotive company in the pre-market session after negative earnings are announced in a different time zone.
• 3Investors react to political events or economic reports released before the market opens, influencing stock prices in the pre-market.

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