2007-09-29 07:38:00 · 13 answers · asked by spotty91 1 in Business & Finance ➔ Investing
simple
after the market closes, the company announces some major news. The next morning, the shares open quite a distance from where they closed the previous night. This is called a "gap" [technically, it is only a gap if it is outsdie the prior day's high to low range].
Rarely, a data error is found after the 'closing' price is published and adjested before the next day's open.
And, for stocks that trade in markets in other time zones, there will be action while your local markets are closed and when they do open, the first order of business will be for the price to move toward that in the other market.
oh
2007-09-29 07:49:46 · answer #1 · answered by Spock (rhp) 7 · 1⤊ 0⤋
1
2016-12-23 19:54:13 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Some of the answers you've gotten are good. Some are bad, such as;
Think of the stockbrokers as a supermarket. They hold the stock and control the price. - WRONG!
The price of a stock is controlled 99.9% of the time by the buyers and sellers of stock. Every time there's a trade between a buyer and a seller is the price at that moment.
Stocks trade on (among other things) perceived value. If that value has changed (on the world market, or here at home), the price will change to reflect that, at the open.
If you're buying a used car. The "buyer" has a percieved value. The seller has a percieved value. If news comes out overnight that the car model is dangerous to drive in... the "value" (perceived value) will go down.
Sometimes people are just in a hurry to sell a stock. Sometimes they're in a hurry to buy it. All of this and more effects the price.
Read some good books on investing. It will help (ALOT)!
2007-09-29 08:09:45 · answer #3 · answered by Common Sense 7 · 0⤊ 2⤋
There is some trading that is done when the market is closed. And orders can be placed when the market is closed. A backlog is created and a clearing process takes place by the market makers and specialists so that an opening price is established.
2007-09-29 08:32:10 · answer #4 · answered by jeff410 7 · 0⤊ 0⤋
Stock markets around the world operate at different times. Their influence can alter prices in markets that are closed.
2007-09-29 07:50:56 · answer #5 · answered by firebobby 7 · 0⤊ 0⤋
Also, stock prices are just an agreed upon price between two parties. Therefore, if there is news overnight affecting the company, industry, or economy in general, the price where two people might agree will definitely change.
2007-09-29 07:46:15 · answer #6 · answered by Hey it's Ken! 3 · 0⤊ 0⤋
Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/c8109
2015-01-27 12:12:57 · answer #7 · answered by Anonymous · 0⤊ 0⤋
It's due to after market trading, you can buy stocks before and after the market closes. It usually isn't a good idea because the costs are higher but some die hards still do it.
2007-09-29 07:47:13 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Same way the price of a pint of milk can change overnight when the supermarket is closed.
Think of the stockbrokers as a supermarket. They hold the stock and control the price.
2007-09-29 07:47:01 · answer #9 · answered by Anonymous · 0⤊ 1⤋
The entire world is involved in the stock market, not just the USA.
2007-09-29 07:41:38 · answer #10 · answered by graciouswolfe 5 · 0⤊ 0⤋