example graph showing day to day discontinuities

With reference to the figure in the link above, why is it that the price at which the stock closed at on monday not equal to the open price on tuesday?

Is this discontinuity due to an adjustment in the price to make up for pre/post market volume? If not then why does this occur?

1 Answer 1


During the 12 plus hours the market was closed news can change investors opinion of the stock. When the market reopens that first trade could be much different than the last trade the day before.

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