| If you want to ask a difficult question of an | | | | |
| investor, ask him or her how much it will | | | | Conversely, the closing price of a stock can |
| cost when you are buying stock. You will | | | | have an effect on the next day's price. There |
| probably get a few puzzled looks and then an | | | | tends to be a carry-over effect from close to |
| answer something like, "That all depends." In | | | | open that reduces stock volatility. Without |
| the stock market, the truth of the matter is | | | | any significant Wall Street news overnight, |
| that once an IPO has ended, there are a | | | | the opening price and the closing price will |
| number of factors that influence the price of | | | | likely be very similar. |
| buying stock and in order to understand stock | | | | |
| price factors, you need to understand some of | | | | A Fresh Start |
| the variables behind them. | | | | |
| | | | Each day when the stock market opens, it is a |
| So How Much Does It Cost When You Are Buying | | | | new day. Those buying stocks will help to |
| Stock? | | | | establish stock prices. A stock that was a |
| | | | strong buy yesterday may be sending off sell |
| This is actually a very vague question. It is | | | | signals to savvy investors today. A stock |
| influenced by the variables that surround it. | | | | that was struggling to day might be |
| For example, MEW Industries is a leading | | | | tomorrow's hot stock. The key to the value of |
| producer of coffee, its common stock closed | | | | a share of stock is what someone is will to |
| today at $15 per share. How much will it open | | | | pay for it. If you pay $500 for Google stock, |
| for tomorrow? Again the answer is not | | | | may want to buy a lot of it but you would buy |
| concrete; for example, before tomorrow's | | | | the Brooklyn Bridge from a man on the street |
| market could open imagine the results if one | | | | before you would pay $500 for MEW Industries' |
| of these things occur: | | | | stock. Remember, buying stock is a perception |
| | | | game. There were people who never thought |
| - Panama, the location of MEW Industries | | | | Google stock would hold its IPO, let alone |
| coffee farms, is taken over by the recently | | | | rise to over $500 per share. Like in life, |
| released Manuel Noriega, severely impacting | | | | beauty is in the eye of the beholder for |
| harvesting. | | | | those buying stocks. |
| | | | |
| - The stock market news is buzzing when the | | | | An Honest Price For Buying Stock |
| President of MEW Industries wins the Nobel | | | | |
| Peace prize. | | | | Forget what you've heard. It's not always |
| | | | about greed and fear! While it is true that |
| - The American Medical Association finds that | | | | emotional factors motive prices for the |
| coffee cures cancer. | | | | people buying stock, the market will always |
| | | | find the true value of a stock, giving |
| - It is announced that a plague of locusts | | | | advantages to those who are able to properly |
| has damaged the coffee crop. | | | | read the investment timing. An event in the |
| | | | news may affect the price of buying a stock |
| Effect Of Opening And Closing Prices On | | | | but the result will only be temporary. |
| Buying Stock | | | | |
| | | | Conclusion |
| Typically, the price will open close to the | | | | |
| closing price the previous day. However, | | | | Buying stock is a matter of identifying the |
| stock price breakouts occur when those buying | | | | factors involved that can affect the price. |
| stock sense an event that could radically | | | | Many times people make investment errors when |
| change the value of a company and its stock | | | | they fail to realize that. Don't worry about |
| value. Factors that motivate those buying | | | | the puzzled looks you get for asking about |
| stocks include things that impact production, | | | | the price. Do your technical analysis and |
| public perception and overall profitability. | | | | learn to determine how much it costs when you |
| As a result, a company will likely see up or | | | | are buying stock. |
| down movement in its stock price. | | | | |