How previous day closing of a stock market is different from current day’s opening?
（this is a question typically of stock market …I know what an index means and aware about its calcution method. But I fail to understand that how previous day closnig and today’s openinig numbers can be different ? Hope u got my question.. Thnx a tonne）
Answer：
The only time the opening price will be the same as the previous close is when the volume is very low. If there are no orders filled at open, then the last price would be the previous close.
Afterhours trading has nothing to do with the opening price. Afterhours trading is a separate session from regular trading. The spreads are usually very wide because of speculators and bargain hunters. But sanity return at the open.
Posted: July 29th, 2010 under US Stock Market.
Tags: current day's opening, Stock market