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Why is there a gap in closing and opening prices on this chart for FB? The previous close on Feb 2 is 323.00 and Feb 3 opening is 244.65. Shouldn't the previous day's close be the next day's opening?

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  • On the morning of Feb 3, people weren't willing to pay as much to buy a share of meta as they were in the evening of Feb 2.
    – Daniel
    Feb 4, 2022 at 14:00
  • @nanoman thanks, the pre-market 'limit only orders' in the answer you pointed was helpful to understand how the premarket prices are set and why the gap might occur. Feb 4, 2022 at 14:09

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There is no requirement that yesterday's closing price be today's opening price. The two figures are unrelated.

Yesterday's closing was the last trade price for the stock. Basically it's a historical representation of what happened then.

Today's opening is where trading started. In the case of FB there was some news that investors considered to be bad announced AFTER yesterday's close. So yesterday's traders were unaware of it. When trading started today investors considered the news and felt the stock was NOT worth what it was worth yesterday and the opening price is significantly lower.

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  • My confusion is partly based on the fact that there was not any more of such gaps for FB stock in the earlier periods on this chart. Perhaps this gap is due to, at the time of the screenshot, the fact that it show the pre-market price? And after the market opens this gap will vanish? Feb 4, 2022 at 14:11
  • Well, the markets opened and the gap is still there. Looks like it is there to stay. Feb 4, 2022 at 14:31
  • No, @user3156459 . Other days have little or no gap because nothing of relevance happened between closing and opening. Also, there is trading going on outside of 'official hours'; your graph simply cuts that out.
    – Aganju
    Feb 4, 2022 at 15:01
  • In the case of FB there was some news that investors considered to be bad announced AFTER yesterday's close. So yesterday's traders were unaware of it. Regular hours trading ends at 4 PM EST. Trading then continues in the aftermarket. Traders were well aware of what was happening. FB released earnings at 4:05 PM on Feb 2nd. Traders did not like the report and there was a massive amount of selling immediately. Within 1 minute, FB was down 40 pts. By the close the aftermarket trading, it was down 70 pts. Feb 4, 2022 at 15:25

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