Illegal practice of obtaining the next day's net asset value (NAV) of a mutual fund's shares and using this information to buy or sell those shares at the previous day's prices. As mutual funds usually compute the NAV at the close of a trading day (4:00 p.m. Eastern Time) for the next day's trades, a trader placing a buy or sell order after the closing time can still get that day's prices and can gain an unfair advantage over other traders. According to the SEC, "Late trading violates the federal securities laws ... and defrauds innocent investors." Late trading, however, is not the same as after-hours trading which is a legal practice.
Related information about late trading:
- Late trading - Wikipedia, the free encyclopedia
Late trading is trading executed after the standard local national exchanges have closed. This is distinct from after-hours trading, as they have in context specific ...
- Late Trading
Oct 12, 2005 ... Late trading refers to the practice of placing orders to buy or redeem mutual fund shares after the time as of which a mutual fund has calculated ...
- Late Trading: Price Percentage Gainers & Decliners - Markets Data ...
Biggest movers among NYSE, NYSE MKT and Nasdaq NMS ...
- Late Trading: Most Active Issues - Markets Data Center - WSJ.com
Late Trading: Most Active Issues - Markets Data Center - WSJ.
- Why Late Trading Is Illegal
Jun 23, 2012 ... Institutional investors got a sweet deal that soured retail investors' mutual fund returns.
- What is late trading? definition and meaning
Definition of late trading: Illegal practice of obtaining the next day's net asset value (NAV) of a mutual fund's shares and using this information to buy or sell those ...
- How Widespread is Late Trading in Mutual Funds? Eric Zitzewitz ...
This paper uses daily fund flow data to examine the extent of late trading in ... example, apparent late trading ceases in September 2003 after the announcement ...
- Late Trading - Financial Dictionary - The Free Dictionary
Late trading of mutual fund shares occurs when investors placing trades after 4 PM receive the 4 PM price. These late traders can use the information revealed ...