Wednesday 11 April 2012



What is the opening price of a stock? Is it same with the closing price of the previous day????????


That’s like asking how long a piece of string is. The answer is as Chandu Sir says ‘it depends.’

Once a stock moves out of the IPO stage and into the open market, there are a number of factors that go into setting the price.


Opening Price

For example, Infosys closes on Tuesday at 2776.80; what will it open at on Wednesday morning?


The answer is
who knows. Most likely, it will open somewhere around 2776.80; but as you can see over here the current day opening price is 2765.00 which is less than 11.80 from the previous day closing price. Any number of things might cause it to open higher or lower. Before the market opens on Wednesday:


  • FDI in retail Sector
  • Budget of 2012-13
  • Monetary policy set by RBI



All of these circumstances and many others could influence the price up or down. In the end, it remains a question of what a buyer is willing to pay and a seller is willing to take.

The swirl of market, political, and industry news influences whether there are more buyers or sellers for a particular stock in the market at any one time.

1 comment:

  1. A person must take all these factors into consideration before investing into a stock...:)

    ReplyDelete