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* Risk of Lower Liquidity. Liquidity refers
to the ability of market participants to buy and sell securities.
Generally, the more orders that are available in the market,
the greater the liquidity. Liquidity is important because
with greater liquidity it is easier for investors to buy or
sell securities, and as a result investors are more likely
to pay or receive a competitive price for securities purchased
or sold. There may be lower liquidity in extended hours trading
as compared to regular market hours. As a result, your order
may only be partially executed, or not at all.
* Risk
of Higher Volatility. Volatility refers to the changes in
price that securities undergo when trading. Generally, the
higher the volatility of a security, the greater its
price swings. There may be greater volatility in extended
hours trading than in regular market hours. As a result, your
order may only be partially executed, or not all, or you may
receive an inferior price in extended hours trading than you
would during regular market hours.
* Risk
of Changing Prices. The prices of securities traded in extended
hours trading may not reflect the prices either at the end
of regular market hours, or upon the opening the next morning.
As a result, you may receive an inferior price in extended
hours trading than you would during regular market hours.
* Risk
of Unlinked Markets. Depending of the extended hours trading
system or the time of day, the prices displayed on particular
extended hours trading system may not reflect the prices in
other currently operating extended hours trading system dealing
in the same securities. According, you may receive an inferior
price in one extended hors trading system than you would in
another extended hours trading system.
* Risk
of News Announcements. Normally, issuers make news announcements
that may affect the price of their securities after regular
market hours. Similarly, important financial information is
frequently announced outside of regular market hours. In extended
hours trading, these announcements may occur during trading,
and if combined with lower liquidity and higher volatility,
may cause an exaggerated and unsustainable effect on the price
of a security.
* Risk
of Wider Spreads. The spread refers to the difference in price
between what you can buy a security for and what you can sell
it for. Lower normal liquidity and higher volatility in extended
hours trading may result in wider than normal spreads for
a particular security.
Members of: National
Association of Securities Dealers (FINRA), S.I.P.C.
Securities Industry Association (S.I.A.)
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