Wednesday, 23 December 2015

Types of prices-Market Vocabulary

In this blog we have made our effort to explain few terms that are routinely used in the market. They are the technical terms used in the market to mention the price movements of the traded financial asset. We are going to brief about the various types of prices used in the market and its implications.


OPENING PRICE

The opening price is the price at which a security trades first at once the exchange opens on a specific trading day. The opening price is an important indicator for the particular day's trading activity, especially for short-term day traders. The securities with very large intra-day price variations will have those fluctuations measured in relation to the opening price for the day.


CLOSING PRICE

Most financial instruments are traded after hours, so the closing price of a security may not equal its after-hours price. Still, closing prices provide a useful indicator for investors to evaluate changes in stock prices over time - the closing price of one day can be compared to the previous closing price in order to measure market sentiment for a given security over a trading day.

A security's closing price on the previous day of trading. Previous close can refer to the previous day's value of a stock, commodity, bond, futures or option contract, market index, or any other security. By comparing a security's closing price from one day to the next, investors can see how the security's price has changed over time.



The closing price is the final price at which a security trades during the closing time of the exchange on a given trading day. The closing price represents the most up-to-date valuation of a security until trading starts again on the next trading day.

ADJUSTED CLOSING PRICE

A stock's closing price on any given trading day that has been adjusted to include the distributions and corporate actions that happened preceding the next day's open. The adjusted closing price is frequently used when examining historical returns or performing a detailed analysis on historical returns.

PREVIOUS CLOSING PRICE:


A security's closing price on the previous day of trading. Previous close can refer to the previous day's value of a stock, commodity, bond, futures or option contract, market index, or any other security. By comparing a security's closing price from one day to the next, investors can see how the security's price has changed over time.

                                                                                                                                           by,
                                                                                                                 Global Market Astro

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