Why does share price open when trading is different than closing?
Table of Contents
For equities, the normal market timing is from 9.15 am to 3.30 pm. So as you can see from the above explanation, there’s a pre-market window with which the opening price is calculated, where depending upon the demand and supply of a stock, the opening price may be different from its previous day closing price.
How is the closing price of a stock determined?
The closing price is calculated by dividing the total product by the total number of shares traded during the 30 minutes. So your closing price is Rs 13.57 (Rs. 95/7). You last trading price is, however, Rs 20, which is the price at which the stock was traded last.
Why does share price change after close?
News about a company often comes out while the market is closed, and this can shift what investors are willing to pay to own a share of the company. For example, a positive earnings announcement may be issued, increasing a stock’s demand and raising the price from the previous day’s close.
“Closing price” generally refers to the last price at which a stock trades during a regular trading session. A number of markets offer after-hours trading and some financial publications and market data vendors use the last trade in these after-hours markets as the closing price for the day. …
Stock market prices are affected by demand-supply economics. In simple words, when demand for a stock exceeds supply, there will be a rise in the price of a stock. The more drastic the demand-supply gap, the higher the price. For example, when many traders are buying stock X, stock X’s price per share will increase.
How do share prices change when market is closed?
Closing share prices explained Every day when the market opens, shares open at a specific price, called the opening price. Share prices then move constantly throughout the trading day as supply and demand for stock changes. And, when the market closes, the stock’s final price is recorded.