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Late-day-trading is a concept that sounds similar to that of after-hours trading but is actually illegal. Late-day-trading is a practice where a hedge fund places an order to buy or sell mutual funds. This is done to sell something after a current asset value is determined while receiving a price that was already predetermined. This all happens after the market closes for the day. This is a practice that is illegal because the trading being done here is impacting long-term investors by allowing people who sell their mutual funds to try to make significant profits. The unfair advantage that a late-day-trader holds will only hurt others. The Securities Act of 1933 states that late-day-trading is not allowed and is punishable by significant fees. Make sure you avoid any plans you find online that are late-day-trading so you can avoid significant trouble.
