September 13, 2012 12:17 pm
Why is there a difference between the closing price of previous day and opening price of present day of a share .Can we purchase or sell shares even after the market hours.
I think your question is related to Pre-Market.
Anurag – you don’t need to place your orders at the market price. If buyers place orders more than the market price, then the shares will open higher than the closing market price. However, if overnight buyers become bearish, they would place orders lower than the closing price. As a result the opening price is mostly different from closing price.
Hope it makes it clear for you.
Banyan Financial Advisors
If an investor puts buy/sell orders after market is closed then are they done at the same price at which market closed the previous day.
Dear Anurag, once the market is closed, you can place orders for a limit price only.
Dear Anurag, the price difference occurs from the sell/purchase orders put in by investors during the off market hours.
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