The bids and offers pre-open (prior to 10:00am) will average out when trading commences at 10:00am. For example: if a stock closing price yesterday was $1.00 and prior to open this morning there was only 1 seller for 100,000 at $0.50 and only a buyer of 100,000 at $1.50, then the opening price would be $1.00 based on the average. The seller would need to watch the order in case the buyer disappeared prior to commencement of trade in which case the selling could be down a long way
This can happen with all stocks from pre-open at 7:00 am until opening at $10:00. It happens again between 4:00 pm and 4:10pm.It also gives an idea of what price a stock may open at.
Hope this helps.
LVT Price at posting:
44.5¢ Sentiment: Hold Disclosure: Held
