Stocks/shares & financial questions?

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1) why do stock prices start at a differnt value the next day to when they ended the day before?

1a) what happens during the night to make this change in price occur and why please?

1b) Same when its the weekend, why do prices change?

2) How and why does the market in the US affect the UK market and also the market in other areas of the world affect the stock prices here in the UK please?

3) As im from the UK, can anyone please recommend any websites (ideally uk sites) that explains not only UK stocks etc, but other areas of finance that applies here in the UK, such as interests rates and its effect on stocks and areas etc, to foreign exchange etc. (im hoping once I grasp the knowledge here, I can then understand USA and global finance better and also read the financial newspapers with some ease).

Thank you in advance x

Stocks/shares & financial questions?

1. In the United States, stocks trade from 0930 to 1600 Eastern. There is a mechanism to trade "after-hours" so some changes could happen overnight.

For example, quarterly earnings are typically announced after trading. If a company has unexpected earnings (or losses) this can change the prices immediately. A stock price is nothing more than bids. Bids can change drastically under new circumstances.

People could suddenly have a change of heart. A lot of a stock's value is on the expectation of the future earnings and growth, which has assumptions about the national and world economy. If you change those assumptions, then the future value could be very different, and change the value of the stock.

2. The world economy is tied together. China finances the US economy to a great extent. The OPEC nations impose a tax on transportation through oil prices. Many large companies have offices and major sales throughout the world. So, if a lot of big British companies aren't expected to do well, neither should US, since we're all in the same world.

3. Can't help you with the UK stuff - I'm on the other side of the pond.

Stocks/shares & financial questions?

for an impergiance...the subsitute would be a rather difficult thing to calculate....dont you think?

Stocks/shares & financial questions?

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