The Basics of the Stock Market
The stock market is a platform where publicly traded companies offer shares of their business to investors. By purchasing these shares, investors become part-owners of the company and can potentially earn a return on their investment as the company’s value increases.
Weekday Trading Hours
Typically, the stock market is open for trading during the weekdays, Monday through Friday. The market opens at 9:30am Eastern Time and closes at 4:00pm Eastern Time.
Weekend Trading Hours
Contrary to popular belief, the stock market is closed on weekends. Saturday and Sunday are not considered trading days and the market is not open for business.
Why is the Stock Market Closed on Weekends?
There are several reasons why the stock market is closed on weekends. One of the main reasons is that it allows market participants to take a break from trading and recharge for the upcoming week. This break also allows for the market to reset and for any news that may have occurred over the weekend to be factored into prices.
Additional Reasons
Another reason why the stock market is closed on weekends is that it allows for maintenance and updates to be performed on the trading systems without disrupting trading activity. It also allows for regulatory bodies to review any suspicious activity that may have occurred during the week.
What Happens to Stock Prices Over the Weekend?
Since the stock market is closed on weekends, there is no trading activity taking place. However, news and events can still occur over the weekend that may impact stock prices when the market reopens on Monday.
Pre-Market Trading and After-Hours Trading
While the market is closed on weekends, there are still opportunities for investors to trade outside of regular trading hours. Pre-market trading and after-hours trading allow for investors to place trades before or after the market is open for business.
Conclusion
In summary, the stock market is closed on weekends and only open for trading during weekdays. This break allows market participants to recharge and for the market to reset for the upcoming week. While there is no trading activity occurring over the weekend, news and events can still impact stock prices when the market reopens on Monday.
