Late-Day Trading

Late-Day Trading

A practice in which a hedge fund buys or sells shares in a mutual fund after the end of a trading day, but asks the fund to record the transactions at the end of the trading day. Because the net asset value (NAV) of a mutual fund is determined at the end of each trading day, transactions that occur after the end of the trading day may distort the fund's true NAV. This allows a hedge fund to close their positions the next trading day at a profit. Late-day trading is considered unethical, but it is not illegal.
Mentioned in ?
References in periodicals archive ?
At press time, the Dow looked to be climbing to a new record, surpassing 11,900 in late-day trading.
But slow trading, typical of the summer holiday season, made it difficult for the Nikkei to close above 10,000, although it mainly moved above that line in late-day trading, brokers said.
Financial Activity Reporting, which allows distributors to track daily investment activity and meet compliance requirements related to monitoring for market timing, late-day trading, and money laundering.
The index has spent most of the session sticking close to the break-even level, but has resumed its rally in late-day trading.
In late-day trading today, SEBL is up nearly 13 percent as excited investors try to get a piece of the action.
RBK has spiked up more than 29 percent by late-day trading, cresting above its July 1997 peak to achieve a new all-time high.
Even skeptical comments from Morgan Stanley this morning couldn't dissuade HRB shares, which are enjoying an eight-percent rally in late-day trading on Friday.
In late-day trading, BRCM is leading the SPX in gains and has taken out short-term resistance from its 20-day moving average.
2420 since we believe it's a secure way to prevent late-day trading without dramatically increasing the administration costs of retirement plans.
GoldK's action comes after Security Trust Company was implicated on September 3, 2003 by the New York State Attorney General as part of a market timing and late-day trading scheme involving Canary Capital Partners.