Does a stock start the next day at the same price it closed for the day before?

Question

If at the end of the day a stock closed at $10, would it start the next day at $10?

Answer 1

NO...

the close price for a stock is an average of last few trades(last 30min. in some bourses) and is reflected on the trading screen post trade......i.e. after the post trade is thru....

post trade is a session allowed in few stocks after the market session....

this avg price is the so called close price.....

but on the next day of market session the price of a stock is purely based on the market

it may show very sharp differences and this difference is based on prev days

close price......

Answer 2

No.  The closing price is the last trade during regular market hours.

The price the next morning will depend on what people are willing to pay or sell for considering last night's news.  Look at stockcharts.com or any chart that uses candlestick format and you will see for yourself that the open is almost never at the previous day's close.

Answer 3

No.  The previous day's stock price has nothing to do with the next day.  If a stock closed at 10 yesterday, it could open at 9.50, 10.50, 6 if bad news was announced last night, or any other price.  For example, last night Apple closed about 166.  Today it will open up about 150.

Answer 4

Yes.

Answer 5

Yes. Absolutely.