Below is a glossary of terms that are used in the online trading industry. Select the first letter of the word you are seeking from the list above to jump to the appropriate section of the glossary.
What is an Aftermarket report?
An Aftermarket report is the initial report released by a company after it has begun trading on the public stock exchange. Typically, before a company begins trading on the stock exchange, an investment bank evaluates the company’s worth, and determines how to break down that value in shares that will be sold to the public. After an initial sale of shares to large investors, known as the primary market. Once the primary market sales have been made, the company is able to be traded on a major stock exchange, such as the New York Stock Exchange (NYSE) or NASDAQ. This happens when some of the initial investors decide to sell some (or all) of their stock shares, and any investor of any size can purchase them.
Once the offerings appear on the secondary market, the company releases an Aftermarket report, providing the name of the company, its ticker symbol, the offer date, and offer and closing prices. Often, Aftermarket reports will provide additional information, including financial data and ratios and a description of the company.
How does one use an Aftermarket report?
Aftermarket reports are extremely helpful for investors to gauge an initial public interest in a newly traded company. While it does not guarantee how the company’s market value will move in the future, it does give investors and traders a reasonable idea of what to look for, and whether or not the purchasing of shares early on would be a wise investment. CFD traders can invest on how they believe the market price will react in the days immediately following an Aftermarket report.