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Non-Tech : Bid /Ask Spreads - Market Manipulation

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To: Peter Wiebe who wrote (62)	10/2/1996 10:23:00 PM
From: Andrew White	of 308

"I thank you for enlightening an uninformed investor. The only part then that is unfair is that the trades done after hours affect the opening prices. Is that not so? Thanx , Peter" Yes it affects the opening price, but that is moot, as everything else effects the opening price. Do you know how an opening price is determined? The opening price is NOT a continuation of the previous day's closing price. Have you seen the gappers? The opening price is determined by the orders, be they market or limit, prior to the opening bell. If there is a huge demand to buy before the open, the price will gap up significantly. Likewise, if after the close, there were terrible news disclosed, then there will probably be a mass exodus to sell before the opening bell and thus the gap would be a big downtick. Thus, Instinet may influence the opening price, but so does everything else, such as some nefarious character starting a negative rumor about any company on AOL or here. Hope this clarifies it up for you. Andy

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