How does pre-market mechanism work and how is the opening price determined of a stock!
How does pre-market mechanism work and how is the opening price determined of a stock!

How does pre-market mechanism work and how is the opening price determined of a stock!

To protect small investors against this, a pre-market opening session was introduced to ensure orderly price discovery during the most volatile times

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Based on the principle of demand supply mechanism, exchange will arrive at the equilibrium price – the price at which the maximum number of shares can be bought / sold.

 

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