Why use pre- and post-market prices to calculate market capitalization and profit & loss of stocks during the respective session

Extended trading hours are also trading hours of the exchanges, and pre- and post-market prices generally respond in advance to financial reports and market fluctuations. For risk control reasons and with reference to the practice in the industry, the latest pre and post-market prices are used to calculate the market capitalization and profit & loss of a stock. When another day begins (that is, after 00:00 a.m. ET), the closing price will be used to calculate the market capitalization and profit & loss of the stock.

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Any illustrations, scenarios, or specific securities referenced herein are strictly for illustrative purposes. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal.