That’s why I had to face many sympathetic looks, whenever the market goes down. If 100 shares of stock are purchased at $10 per share and the shares then increase to $20 per share within the next couple of weeks, the investor sells the 100 shares for $2,000, repays the broker the $1,000 borrowed to purchase the stock and, after paying the broker the interest due on the loan plus the buying and selling fees, pockets a profit of close to $1,000.
Even though the day after Thanksgiving (Friday) is not a holiday officially, there is a tradition of closing the market at 1:00 p.m. ET. Therefore, in 2012, each market will close early at 1:00 p.m. on Tuesday, July 3, 2012, Friday, November 23, 2012 (the day after Thanksgiving) and Monday, December 24, 2012. Similarly, in 2013, each market will close trading early on Wednesday, July 3, 2013, Friday, November 29, 2013 (the day after Thanksgiving) and Tuesday, December 24, 2013. Additionally, no one wants to hear that the stock market has crashed on a Sunday morning.
Due to the Internet and computerized trading, markets are being pressurized to be open on all days for 24 hours. The stock exchanges, especially the NYSE on Wall Street and the London Stock Exchange in England are closed on the Christian holidays of Good Friday and Christmas. Even though the day after Thanksgiving (Friday) is not an official holiday, the market has a tradition of closing at 1:00 p.m. ET. The New York Stock Exchange had a two hour trading session on Saturdays from 10am to 12PM Noon.
When any stock market holiday falls on a Saturday, the market will be closed on the previous day (Friday) unless the Friday is the end of a monthly or yearly accounting period. The New York Stock Exchange had a two hour trading session on Saturdays from 10am to 12PM Noon. The New York Stock Exchange has a list of the days on which the biggest stock market in the world is closed for business. The most common stock market valuation method is the stock Price-to-Earnings Ratio (P/E Ratio).
Bond and other securities markets are somewhat more decentralized, but the Securities Industry and Financial Markets Association (SIFMA) has a list of suggested holidays and half days. Finally, the Chicago Mercantile Exchange also provides information on when US equity and other futures markets are open and closed during the holiday season. The P/E Ratio for any stock can be determined by dividing a stock’s price by the reported earnings over the past twelve months. For example, if Bank of America (BAC) is selling for $10 per share, and it reported earnings of $0.50 per share during the past year, then BAC’s stock has a P/E Ratio of 20.