For example a stock could close at 107.89 and then open at 104.22 or vice versa.
2007-05-17 11:53:49 · 4 answers · asked by Damian 2 in Business & Finance ➔ Investing
$108 to $1.04 is not a drastic change, and the opening price is simply the first bid accepted by a seller.
Many stock exchanges have after hours trading, and that can affect share prices. Some web sites just throw out a meaningless price for their close. When I was new to trading, I owned a stock that was trading for about $14.00. I checked the web site and saw a closing price (or maybe it was a "last" trade price) of more than $50.00. I spent an hour trying to find some news that would explain what had happened to cause the stock to shoot up so drastically. I didn't find any, but I stopped looking and took my wife out to dinner to celebrate.
The next morning I almost gave back my dinner....
2007-05-17 12:05:52 · answer #1 · answered by SCOTT M 7 · 2⤊ 0⤋
News on the company, earnings releases, and after hours trading all have an effect on the price that a stock opens at the next day. If xyz stock is at $75 and news is released that the CEO has been arrested or one of the company's top products is being recalled then the stock will open lower the next morning. Bad news and good news is factored into the price. When the news occurs after the market closes the price on opening will reflect the news. Good Luck
2007-05-17 18:59:52 · answer #2 · answered by GUS 4 · 0⤊ 0⤋
Mutual Fund Managers sell or buy their shares before or after the stock market is closed.
2007-05-18 00:19:44 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Law of demand and supply!
2007-05-17 19:44:30 · answer #4 · answered by Aquanaut 3 · 0⤊ 0⤋