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* Risk of Lower Liquidity. Liquidity refers
to the ability of market participants to buy and sell securities.
Generally, the more orders that are available in the market,
the greater the liquidity. Liquidity is important because
wit greater liquidity it is easier for investors to buy or
sell securities, and as a result investors are more likely
to pay or receive a competitive price for securities purchased
or sold. There may be lower liquidity in extended hours trading
as compared to regular market hours. As a result, your order
may only be partially executed, or not at all.
* Risk of Higher Volatility. Volatility refers to the changes
in price that securities undergo when trading. Generally,
the higher the, the volatility of a security, the greater
its price swings. There may be greater volatility in extended
hours trading than in regular market hours. As a result, your
order may only be partially executed, or not all, or you may
receive an inferior price in extended hours trading than you
would during regular market hours.
*
Risk of Changing Prices. The prices of securities traded in
extended hours trading may not reflect the prices either at
the end of regular market hours, or upon the opening the next
morning. As a result, you may receive an inferior price in
extended hours trading than you would during regular market
hours.
* Risk of Unlinked Markets. Depending of the extended hours
trading system or the time of day, the prices displayed on
particular extended hours trading system may not reflect the
prices in other currently operating extended hours trading
system dealing in the same securities. According, you may
receive an inferior price in one extended hors trading system
than you would in another extended hours trading system.
* Risk of News Announcements. Normally, issuers make news
announcements that may affect the price of their securities
after regular market hours. Similarly, important financial
information is frequently announced outside of regular market
hours. In extended hours trading, these announcements may
occur during trading, and if combined with lower liquidity
and higher volatility, may cause an exaggerated and unsustainable
effect on the price of a security.
* Risk of Wider Spreads. The spread refers to the difference
in price between what you can buy a security for and what
you can sell it for. Lower normal liquidity and higher volatility
in extended hours trading may result in wider than normal
spreads for a particular security.
Members of: National Association
of Securities Dealers (FINRA), S.I.P.C.
Securities Industry Association (S.I.A.)
Send questions or comments about this web site to f.otalvaro@brokerwebstation.com
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