The difference between the closing price and the last traded price of a stock can be attributed to several factors some of them as follows
Closing Price: This is the price of the last trade that was recorded before the market closes on a particular day. It is used as a standard reference point for tracking the performance of a stock from one trading day to the next.
Last Traded Price: This is the most recent price at which a trade was executed. It can fluctuate significantly during the trading day and does not necessarily correspond to the closing price.
After-Hours Trading: The closing price reflects the last trade done during regular market hours. However, trading can still occur in after-hours markets. The last traded price you see might reflect trades made after the regular market has closed, which are not included in the closing price.
Adjustments: The closing price is sometimes adjusted after the market closes to reflect late-reported trades or corrections. This adjustment process can result in a different price from the last trade recorded at the market close.
Time Lags:
There can be a time lag in reporting the prices, especially in fast-moving markets. The last traded price you see might not be up-to-date with the actual closing price due to delays in data feeds or reporting.
Volume of Trades: In some cases, especially with less liquid stocks, the last trade might occur several minutes before the market closes. The closing price is based on this last trade, while the last traded price might be reflecting an earlier or later time point.
Understanding these distinctions is important for investors and traders, especially those who rely on precise timing and price information for their strategies.
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