What is ‘After the Bell’ – Meaning and Example

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after the bell meaning
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After the Bell Meaning with Example

After the Bell Meaning – A Financial term for referring the time after the closing of the normal trading session in the stock market.

What most of the company does. is that they keep the important news with themselves and announce it after the bell. This is done so that investors get enough time to investigate about the announcement. It provides ample of time to make accurate decision in relation to buying and selling of stock. The another reason for declaring profit results or losses so that there remains order and stability in the market.

Any bad news that generated before the trading session ends, could results in negative consequences for stock market, investor as well as the company. Information shares after end of trading session buys time for the investor so that they take each and every decision smartly. It is also important to note that traders may involve in trading even after end of trading session which has no relation to the companies new release.

After The Bell Example

In order to understand the after the bell meaning clearly, let’s discuss an example. Let’s take an example of ABC company which is a public company. Now suppose the CEO of the company has resigned and a new CEO is appointed. The company decides to share the information with shareholder after the bell. This is done so that investor do not panic and they has sufficient time to research over the companies decision as well as for taking their own decision.

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