Why would closing price of a stock be different from different sources, and which would you take as the real price?

Why closing price is different?

The last traded price (LTP) usually differs from the closing price of the day. This because the closing price of the day on NSE is the weighted average price of the last 30 mins of trading. The last traded price of the day is the actual last traded price.

Why is closing and opening stock price different?

During a regular trading day, the balance between supply and demand fluctuates as the attractiveness of the stock’s price increases and decreases. These fluctuations are why closing and opening prices are not always identical.

Why are stock prices different on different sites?

The higher the “liquidity” of a stock on an exchange, the less likely that stock is to have a large variance from other exchanges. In other words, the longer it takes for a buyer and seller to be matched, the more drift can occur between the most recent last sale price and the “stock price” on a different exchange.

Why is the opening price sometimes different from the closing price of the previous day?

The closing price of a stock one day and its open price the next day are often different. That’s because news about a company can, and often does, come out while the market is closed, shifting what investors are willing to pay to own a share of the company.

How the closing price of a stock is determined?

The closing price is calculated by dividing the total product by the total number of shares traded during the 30 minutes. So your closing price is Rs 13.57 (Rs. 95/7). You last trading price is, however, Rs 20, which is the price at which the stock was traded last.

Why closing price is important in stock market?

Closing prices are useful markers for investors to use to assess changes in stock prices over time. Even in the era of 24-hour trading, there is a closing price for any stock or other security, and it is the final price at which it trades during regular market hours on any given day.

Why does stock price change after close?

Why Are Stock Prices More Volatile in After-Hours Trading? The number of participants in after-hours trading is a fraction of those during regular market hours. Fewer participants means lower trading volumes and liquidity, and hence, wider bid-ask spreads and more volatility.

What is the difference between last price and close price?

Difference Between Closing Price and LTP? Last Traded Price is the stock price you see when the Market is Active whereas Closing Price is the stock price you see when the Market Closes.

Is last price the same as closing price?

A: The last price and the closing price are usually the same thing. If they vary, the closing price should be used as it refers to the last ‘on market’ traded price. After the market closes, brokers have a half hour window during which they can transact last minute orders and report the deal on the trading screen.

What is average closing price?

Average Closing Price means the average of the closing market prices of the Units over the last five Market Days, on which transactions in the Units were recorded, immediately preceding the date of the Market Repurchase or, as the case may be, the date of the making of the offer pursuant to the Off-Market Repurchase, …

Who decides the opening price of a stock?

The opening price is determined based on the principle of demand and supply mechanism. It occurs at the equilibrium price, where the maximum volume (tradable quantity) is executable. In the above example, the maximum tradable quality was possible at a share price of Rs 102.

How do you predict the opening price of a stock?

After-hours trading activity is a common indicator of the next day’s open. Extended-hours trading in stocks takes place on electronic markets known as ECNs before the financial markets open for the day, as well as after they close. Such activity can help investors predict the open market direction.

How market price is determined?

The market price of an asset or service is determined by the forces of supply and demand. The price at which quantity supplied equals quantity demanded is the market price. The market price is used to calculate consumer and economic surplus.

What factors affect a stock’s price?

Factors that can affect stock prices

• news releases on earnings and profits, and future estimated earnings.
• announcement of dividends.
• introduction of a new product or a product recall.
• securing a new large contract.
• employee layoffs.
• anticipated takeover or merger.
• a change of management.
• accounting errors or scandals.

What causes stock price change?

If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall. Understanding supply and demand is easy.

What are the different issues and challenges in the process of price determination?

The 7 Challenges of Modern Competitive Pricing

• Problem 1: Low Completion and High Data Error Rates in Competitive Pricing Shops. …
• Problem 2: Like-product Comparison. …
• Problem 3: Lack of an Integrated Omni-channel Approach. …
• Problem 4: Static Lists, a One-Size-Fits-All Approach. …
• Problem 5: Tactical, Not Strategic.

What are the key issues in pricing strategy?

Top 8 Specific Problems of Pricing

• Pricing Over the Life Cycle of the Product:
• The Rate of Market Growth:
• The Erosion of Distinctiveness:
• The Significance of Cost:
• Post-Skimming Strategies:
• Mixed Strategies:
• Pricing in Maturity:
• Pricing Products in Decline:

What are the issues of pricing?

What You Need to Know What are the main issues affecting pricing? Economic forces, including inflation, wages, disposable income and regulation will influence pricing by market. Supply and demand influence pricing. Generally, when supply exceeds demand, prices will fall.

What are the challenges in pricing a product?

6 Pricing Challenges Facing Retailers

• Brand positioning. Having an appropriate pricing strategy goes hand in hand on how you want to position your product in the market place. …
• Pricing for different consumers. …
• Competing against other retailers. …
• Varying prices. …
• Knowing when to discount. …
• Pricing for different channels.

Why is the pricing of services particularly difficult in comparison with the pricing of goods?

Pricing services is often more difficult than pricing products especially for small firms or individual professional ventures. The difference in complexity lies in costs being harder to compute in services, unlike when you are selling tangible products.

Which five factors influence the pricing of a product service?

Five factors to consider when pricing products or services

• Costs. First and foremost you need to be financially informed. …
• Customers. Know what your customers want from your products and services. …
• Positioning. Once you understand your customer, you need to look at your positioning. …
• Competitors. …
• Profit.