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Old 05-17-2007, 07:51 PM
kimchi kimchi is offline
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Join Date: May 2006
Location: FU minbet
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Default Re: Im a fish at investing , answer some questions yo?

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Is this why a stock may open for more than it closed for? Are there other reasons for the stock opening for more than it closed for?



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Opening gaps, or when a stock opens higher or lower than it closed preciously, are often due to a build-up of buy/sell orders the night before. Marketmakers aren't particularly charitable and will happily fill overnight orders to their benefit and trade against you.

The opening prices tend to be a reflection of the dumb money, whereas closing prices are more attributable to the smarter money.
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