Re: how is the opening price set?
- From: "704set" <704set@xxxxxxxxxxxxxxxxxxx>
- Date: Fri, 21 Apr 2006 20:03:33 -0400
The opening price is simply supply (the number of shares for sale) and
demand (the amount of money available to buy). Let's say some very positive
news is announced before the opening. There is an influx of buyers. The
specialist will indicate a higher opening price hoping to attract sellers.
He will adjust this price up or down as buyers and sellers place their
orders. At the price where buyers and sellers are even is where the price
will open.
704set
"mike" <mapson@xxxxxxx> wrote in message
news:iQ72g.25903$NS6.9784@xxxxxxxxxxxxxxxxxxxxxxxxxxxxx
hi,
the price of comapny X/s stock opens monday at $25 on the amex.. by the
end of the day monday comapny X/s stock price is $26.
there is no after hours trading of this stock. the next day, tuesday,
company X opens at $25.50. who set that price? how did the price drop .50
overnight? does the company set the price? amex officials? it can't be the
maketplace since no one has been able to buy or sell the stock since close
of trading the previous day, right?
at some point, someone, somewhere between the close of monday's market and
the opening of tuesday's market must have said, "ok, drop .50 of company
x's stock price." who is it?
who sets the price? company X's stock closes at $26 on monday. the stock
is not traded after hours. at 8pm msnbc has a story outlining the
impending arrest of stanley lynedpokits, the ceo of company X who they
say is under suspicion of embezzlement. tuesday morning the stock opens at
$!0. IT OPENS AT $!0! how does this happen. it doesn't drop to $10 from
$26 in a huge, precipitous fall, no. it opens at $10. we know why it
happened, the bad publicity. but who set that $10 price before trading
begins?
thanks,
mike
.
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- how is the opening price set?
- From: mike
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