How Stock Markets Operate Globally

A stock exchange is a marketplace where buyers and sellers trade shares of listed companies. These exchanges connect investors with businesses, allowing you to buy ownership in companies like Apple, Safaricom, or Tesla.

Because markets are global, their trading hours differ depending on location — but in Kenya, most activity happens in the evening.

🕒 Global Market Timings (Kenyan Time)

🔁 Pre-Market

⏰ 4:00 AM – 9:30 AM (ET)
➡️ 11:00 AM – 4:30 PM (EAT)
Limited trading activity
Only some brokers/platforms allow access
Mostly institutional investors trade here

🟩 Regular Trading Hours

⏰ 9:30 AM – 4:00 PM (ET)
➡️ 4:30 PM – 11:00 PM (EAT)
The main trading window
Highest volume of trades
Best time for liquidity, quick execution, and tighter spreads
Most global investors focus on this session

🌙 After-Hours Trading

⏰ 4:00 PM – 8:00 PM (ET)
➡️ 11:00 PM – 3:00 AM (EAT)
Fewer trades, lower liquidity
Prices may swing more due to limited buyers/sellers
Higher risk: wider spreads and slower execution

⚖️ Key Players in the Global Stock Market

👤 Investor → This is you, the person buying or selling shares. Investors provide the money that keeps markets active. They can be retail investors (ordinary individuals like you and me) or institutional investors (big players such as pension funds, insurance companies, or hedge funds). Every trade starts with an investor making a decision to buy or sell.
🏛️ Broker → Brokers act as the middleman between you and the stock exchange. Since individual investors cannot directly access most stock exchanges, brokers provide platforms (apps/websites) to place orders. They handle the technical execution of buying and selling shares on your behalf. In return, they may charge a commission or earn through small price differences.
⚖️ Custodian → A custodian is like a digital “bank vault” for your shares. When you buy stocks, you don’t physically hold paper certificates. Instead, custodians keep your shares safely in electronic form, ensuring ownership is recorded correctly. This prevents fraud, loss, or mix-ups. In Kenya, for example, the Central Depository and Settlement Corporation (CDSC) plays this role for NSE-listed stocks.
⚙️ Market Maker → Market makers are special firms or institutions that ensure there are always both buyers and sellers available for a stock. They continuously quote buy (bid) and sell (ask) prices to keep trading smooth. Without them, markets would freeze whenever no buyers or sellers are present. By providing liquidity, they help investors buy or sell shares quickly without huge price swings.

💡 Why This Matters for Kenyan Investors

⏰ Timing: Since U.S. stock market activity happens 4:30 PM – 11:00 PM Kenyan time, evening is the best window to follow and trade.
📊 Opportunities: Global markets let you diversify beyond local stocks (like NSE), gaining exposure to U.S., European, or Asian companies.
⚠️ Risks: After-hours trading may look attractive but comes with higher volatility and execution challenges.

✅ Quick Recap

Stock markets are global marketplaces where shares are traded.
In Kenya, the prime trading hours for U.S. markets are in the evening.
Different sessions (pre-market, regular, after-hours) have different levels of liquidity and risk.
Players like brokers, custodians, and market makers keep the system smooth.

📈 By understanding when and how stock markets operate globally, Kenyan investors can plan smarter trades, avoid risky timings, and build a stronger international portfolio.