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