Finance: What is a Delayed Opening?

What is a Delayed Opening? When a publicly traded company makes an announcement or if a news item concerning the company comes out after market close or before market opening times, it is not uncommon for trading of the stock the next trading day to be delayed. This is for the traders and general public to absorb and assess the news, and the exchange assists in trying to give market makers or specialists a chance to prepare for the presumed flood of buy and sell orders beyond normal trading activity.

College and CareerPersonal Finance
CoursesFinance Concepts
FinanceFinance Definitions
Financial Responsibility
Personal Finance
Finance and EconomicsTerms and Concepts
LanguageEnglish Language
Life SkillsFinance Definitions
Personal Finance
SubjectsFinance and Economics
Terms and ConceptsBanking
IPO
Investing
Stocks
Trading

Transcript

00:19

guy who he's delayed and there it is Ding ding

00:23

ding opening bell Okay everyone sapo supposed to be eating

00:26

now Well yeah they do that to goes with the

00:30

territory but this one's delayed let's See what's going on

00:34

here who looks like this bird's going miss its earnings

00:37

number now the company was supposed to divulge all the

00:40

information but it looks like they left out one little

00:43

key Important fact the ceo is resigning Ouch Yeah that

00:48

smarts So the stock closed yesterday at forty two And

00:52

it's indicated at like thirty bucks a share here And

00:55

all the geese are scrambling to create what's called an

00:58

orderly market roughly matched or even sets of buyers and

01:03

sellers all coming together to transact Unfortunately there were so

01:07

many sellers The g's just couldn't keep things in order

01:10

So things air delayed So there are a whole gaggle

01:14

Of reasons a stock openings can be delayed in real

01:17

life Key nuggets of information not fully globally digested yet

01:21

like you know that little thing about the ceo resigning

01:24

and that's a good one How about the government indicting

01:27

the company for fraud Yeah that's Another good one Or

01:30

what about the company Pre announcing that they're going to

01:32

miss earnings by fourteen dollars a share A big power

01:36

outage on the east coast Yeah that could do it

01:38

too well Some computer malware sent by our kindly loving

01:43

trading partners overseas you betcha Well openings get delayed for

01:47

good reason Because if all of the information isn't fairly

01:50

disseminated well ah whole lot of people who should be

01:53

selling their shares at thirty eight thirty two a share

01:56

ended up selling him for twenty two bucks and will

01:58

have been financially you know damaged The whole notion of

02:02

a fair and orderly market is arguably the single best

02:05

thing about the way capital markets work in america versus

02:09

almost anywhere else in the world Like we trust our

02:12

system mostly the day the country loses its trust from

02:15

the people who participate in the investing community Well that's

02:18

pretty much the end of everything we know in a

02:20

capitalist society is that right comrades and getting go quack