Opening prices

Updated: Aug 20, 2021

The prices at which dealings start at the commencement of business in a market. In the stock exchange, for example, at the time of official opening, dealers must begin by quoting prices before they have a full appreciation of the relative strength of supply and demand. If they have reason to think that demand will be heavy where favourable news has been released overnight, then they will mark up their opening prices, compared with the closing prices of the previous day.

Reference: The Penguin Dictionary of Economics, 3rd edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.