how come a stock opens in the morning with a different value than the value it closed with in the previous day?
2007-07-19 09:14:21 · 3 answers · asked by Wilfried V 2 in Business & Finance ➔ Investing
Stocks can continue trading after market hours by institutions and certain investors.
But this isnt the only reason why stock prices change the next day. News can also change the price of the stock. Ex. If you bought xyz drug company stock for $10 and later that day the news said the drug was killing people. People will not buy it for $10 dollars anymore because of the extra risk and lower earnings expectations. The price will open at a lower price to attract investors.
2007-07-19 10:52:04 · answer #1 · answered by Good Steward 2 · 0⤊ 0⤋
How do overseas investors buy stock on NYSE when it is still closed?
2016-11-10 07:55:43 · answer #2 · answered by Herman 2 · 0⤊ 0⤋
After-hours trading. Not all sales are completed instantly, so any trades made just before closing aren't reflected in the closing amount, but are recalculated during the evening when everything gets settled.
2007-07-19 09:21:27 · answer #3 · answered by sortaclarksville 5 · 1⤊ 0⤋
A gap up (or down) based on the news released AH.
2007-07-19 14:13:12 · answer #4 · answered by Anonymous · 0⤊ 1⤋