Thresher Industries, Inc. (THRR)

[twroach]

Form T trading does present a few important advantages. If the investor happens to find out something that may have an effect on the price of a stock after hours, they have the convenience of acting on that information immediately. Otherwise, it would be necessary to wait until the markets open again, by which time the information will have reached many more investors, making it harder to profit from the situation. Form T trading also makes buying and selling U.S. stocks more convenient for foreign investors who operate outside the usual hours of trading in the U.S.

It should, however, be noted that Form T trading should be done with the utmost caution, especially by the individual investor. The risks may in many cases outweigh the benefits. The biggest drawback of after-hours trading is the lack of liquidity. This simply means that for some stocks, trades become very difficult to execute, and some stocks may not trade very little or not at all during extended hours. Additionally, depending on the broker, an order may not reach all the possible venues where it could be executed, so if it is executed, it may not be at the best possible price. Some investors do feel that the risks of Form T trading are worth the rewards, but it is best suited to those with the most experience in the market.