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.
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Shares of Spotify were down 3.45 percent in late-day trading Wednesday.
PRICE ACTION: Shares of Facebook are off earlier lows but still down almost 1% to $191.40 in late-day trading.
At press time, the Dow looked to be climbing to a new record, surpassing 11,900 in late-day trading.
Based on a late-day trading price of $25.60 per share, that would equate to about 15.63 million shares.
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.
PRICE ACTION: Shares of Valeant are up 5.7% to $16.99 per share in late-day trading.
More bad news was directed at WestPoint Stevens, whose stock value had eroded to 1.25 in late-day trading Friday.