What is curb trading?
It is trading that takes place outside general market regulations. Curb trading - also known as kerb trading - usually occurs through phones or computers after the official exchanges have closed for the day.
Where have you heard about curb trading?
Years ago, stocks thought unfit to trade on the New York Stock Exchange were bought and sold on the street curb. This led to the establishment of the American Stock Exchange, so trades outside exchange regulations are now called curb trading.
What you need to know about curb trading.
Curb trading tends to take place either because the company operating the mainstream stock exchange has very strict listing requirements, or because investors are so keen to continue trading after official business hours that they set up alternative arrangements for their trading.
In the US, curb trading is an illegal practice under the rules of the Commodity Futures Trading Commission and the Commodity Exchange Act. Curb trading should not be confused with a trading curb.