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Finance a la shmoop.. What are at the close order and at the opening orders

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Well simply put they're a way of buying and selling stocks and bonds and [Shmoop video on PC monitor]

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they're really a hybrid form of a limit order only instead of limiting the order

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of a hundred shares of Mickey D's at 45 bucks or better the "limit"

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is time-based that is it is placed a minute or less from the close of the

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market like 3:59 p.m. New York time or the open of the market like 9:31 a.m. New

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York time got it so why would someone do this kind of limit order well if a [Man discussing limit order]

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company that day before had printed what looked like a really good quarter but

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upon deep inspection the investor who owned the shares thought otherwise and [Man inspecting company folder]

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you know wanted to dump them well then that investor would want to take

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advantage of a high opening print and just sell it whatever the price was a

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minute or two after the open making the bet that the stock would then trade down

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after bigger smarter better analysis was published on the stock itself and then

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everyone else went to dump it - so what about an at the close order well kind

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of inverse of the same thing here a company's quarter will be announced at [4:28pm shown on digital clock]

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4:30 p.m. New York time tons of excitement leading up to it so

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"everyone" wants to be long the stock ahead of earnings but you think

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earnings will disappoint like you know buy the rumor sell the actual news kind

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of vibe so you want to hold the stock until the last minute that day and then

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you just give the guidance to sell the stock that last minute of trading or at [Investor sells stock to market]

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the close and you're out and now we have arrived at the close of this video... Adios! [Man waving on stage]

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