DEFINITION of 'Overnight Return'
One of the two components of the total daily return generated by a stock. Overnight return measures the return generated by a stock when the market is closed, based on its price change from the close of one trading day to the opening of the next trading day. Overnight return and intraday return together constitute the total daily return from a stock, which is based on the price change of a stock from the close of one trading day to the close of the next trading day.
BREAKING DOWN 'Overnight Return'
The overnight return component of total return is significant because most companies report their financial results when markets are closed, in order to enable all investors to receive the information at the same time. Most companies also make major announcements after market hours, rather than in the middle of the trading day. As a result, the opening price of a stock is often likely to be materially different from its previous day's close.
In addition, as global financial markets display a higher degree of correlation thanks to globalization and the efficient dissemination of information, stocks are now increasingly likely to be affected by developments in overseas markets, which would also boost the importance of overnight returns.

Intraday Return
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Professionals
Introduction
FINRA/NASAA Series 66: Section 2 Measuring Portfolio Returns. This section discusses different return measures: return on investment, holding period, annualized, risk free and total returns. 
Professionals
Measuring Portfolio Returns
NASAA Series 65: Section 16 Measuring Portfolio Returns. In this section different types of risk measures discussed and some sample questions. 
Professionals
Risk and Return Measures
Risk and Return Measures 
Professionals
Other Terms
FINRA/NASAA Series 66: Section 2 Other Terms. This section discusses measures of portfolio return: risk premium, expected return and benchmark portfolios. 
Professionals
Rates of Return
FINRA/NASAA Series 66 Section 1  Rates of Return. In this section internal rate of return (IRR), real return, expected return and riskadjusted return. 
Fundamental Analysis
Explaining Expected Return
The expected return is a tool used to determine whether or not an investment has a positive or negative average net outcome. 
Professionals
Rates of Return  Internal Rate of Return
FINRA/NASAA Series 65  Rates of Return  Internal Rate of Return. In this section Internal rate of return, real return, riskadjusted return, beta and total return. 
Professionals
Expected And Unexpected Returns
Find out how to apply this to your portfolio. 
Term
Understanding Total Returns
Total return measures the rate of return earned from an investment over a period of time. 
Investing Basics
How to Evaluate Stock Performance
Learn how to evaluate stock performance. While what you look for in a stock could be different from another person, the way you analyze performance is the same.

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