The trading that occurs after an initial public offering (IPO) is the aftermarket. The trading volume on the first day that an equity is publicly offered is extremely high. Flipping and aftermarket purchases can cause the volume to unexpectedly rise or drop in the days immediately following an IPO. Investors must be aware of the risks involved with trading in a fast aftermarket. The aftermarket performance is the appreciation or depreciation of an IPO from the offering price forward. However, to get a more realistic benchmark, some investors prefer to track the aftermarket performance from the first day close because of the high volatility during the first day of trading.
Trading in an issuer's securities once the company has gone public. Aftermarket trading is between third parties and does not involve the issuer. A stock's aftermarket performance is an indication of how well the stock has performed after it has gone public. The increase or decrease is measured against the offering price.
The trading of a stock or security that happens after the initial public offering (IPO). Also referred to as the secondary market. Proceeds from sales in this market go to brokers and dealers, whereas the proceeds in an IPO go to the issuing company.
Trading in the IPO subsequent to its offering is called the aftermarket. Trading volume in IPOs is extremely high on the first day due to flipping and aftermarket purchases. Trading volume can decline precipitously in the following days.
The trading market that develops for shares after the public offering is over. Orders to buy or sell shares are matched in the over-the-counter (OTC) market by a securities firm acting as a market maker. For NYSE or American Stock Exchange shares, a specialist on the stock exchange will match orders. The quality of the aftermarket is measured by its ability to absorb bid price or asked price orders without major disruptions in the price. That ability is a function of the market's liquidity - the number of shares owned by the public, rather than by company insiders (called the float), and the extent to which the public is active in trading the shares, rather than holding them for the long term.
The aftermarket for a newly issued stock or other security is the trading of it that occurs following the initial public offering of the security. In the aftermarket, an investor purchases a security from another investor rather than directly from the underwriter. See: Secondary Market, Primary Market
A term used to describe the various products and services used to repair, maintain, or upgrade vehicles. The term "aftermarket" is most commonly used to describe specialty auto body parts such as hoods, spoilers, and body kits.
Typically used in the automotive industry, but not exclusive to it, the aftermarket is the supply of goods that add on to or repair an original purchase. For example, a customer that buys a new car stereo sometime after having taken delivery of his or her car is buying in the aftermarket.
Aftermarket is an umbrella term for the collective network of vendors who design and sell vehicular components that are intended to replace the stock manufacturer's parts. The two main reasons for this are (i) in order to alter the appearance or performance of the vehicle; or (ii) as a straight replacement for a stock item at a lower price, with no intention to cause such a change in appearance or performance.
In recent years many model car enthusiasts have started their own small businesses supplying the hobby with detailing components, resin bodies and, in some cases, full resin kits. These small businesses are usually referred to within the hobby as aftermarket sources and/or businesses.