Now, it seems to me that it’s just trading after market close, 4:30 PM, and it seems that it is allowed.
But, whenever I hear about after hours moves, they’re not reflected in the opening price the next day.
E.g. on Friday, KKD (Krispy Kreme) closed at 5.74. I saw in the paper saturday how it dropped to 4.24 in after hours trading (can’t find that cite. It was just a little chart in the NYT about after hours movers). But this morning, there it is, sitting right there at 5.74.
Is the after hours trading on something that isn’t the actual stock?
I suppose I also see something similar with before market trading.
After-hours trading does involve the actual stock of the security in question, but it does not involve trading in that stock on the exchange on which that stock is listed. In after-hours trading, a broker/dealer firm, rather than an exchange, attempts to match buy and sell orders. These matched orders are executed by the broker/dealer, not by the exchange. Prices quoted online during trading hours reflect the most recent prices actually paid for purchases on the listing exchange. While after-hours trading can influence the orders placed on the exchange when it opens, there is not a direct impact.