Opening Price

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Definition of 'Opening Price'

The opening price is the first price at which a security is traded on a given trading day. It is the price at which the security is offered for sale by the market maker at the start of trading. The opening price is often used as a reference point for determining the day's trading range.

The opening price is determined by the interaction of supply and demand for the security. If there is more demand for the security than there is supply, the opening price will be higher. If there is more supply of the security than there is demand, the opening price will be lower.

The opening price can be affected by a number of factors, including:

* Economic news
* Corporate news
* Technical factors
* Market psychology

The opening price is an important piece of information for investors to consider when making investment decisions. It can provide an indication of the strength of demand for the security and the direction in which the price is likely to move during the day.

However, it is important to remember that the opening price is just one piece of information that investors should consider when making investment decisions. Other factors, such as the company's financial performance and its long-term prospects, are also important to consider.

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