Hello, what exactly is happening after an earnings release? who is moving the price, why don't the market makers leave and go all illiquid like on most days? after market simply acts very different and no, the series 56 training materials didn't explain why either so lets say earnings came out of 4pm est. market closes, earnings numbers are released and simulatenously the share price goes wild, up, down. down then up, up then down. who are these participants? sometimes the volume here can be greater than during the normal session I could understand if the share price just gets pegged to a proper value more in line with earnings and updated book value, but that doesn't explain the volume Its not options holders because the market is closed. even though options have similarly priced in the same +/- move which happens. Is it banks exercising warrants that have special trading priviliges? insight appreciated
Anyone can enter orders. Could be people opening positions in expectation of next day follow through, or people with positions who were wrong and want out. Or firms making markets to capture the wider spreads. There is also more to react to than just the printed report. It moves around based on stuff they say during the conference calls.