AFTER THE BELL

A phrase employed to describe earning reports, news, and other activities that are given after the stock market had already closed for the day. The announcements after the bell are incorporated to the stock prices at the start of the next trading session, because orders cannot be placed until the market is still closed. An optimistic information regarding a specific security, released after the bell, may induce a pouring of early morning trading activity. Meanwhile, pessimistic news may lead to an opening lower of a security.