Current Price

Categories: Trading, Metrics, Stocks, Bonds

You want to buy a stock when the exchange is open. Congratulations...you're going to buy it at the most-recent selling prices offered by a counterparty. This is the current price.

It’s the “present” value of an asset, be it a stock, commodity, options contract, bond, stamp, or anything else that can be exchanged for money. The word "current" should give it away.

Related or Semi-related Video

Finance: What are At-the-Close Order and...24 Views

00:00

Finance a la shmoop.. What are at the close order and at the opening orders

00:08

Well simply put they're a way of buying and selling stocks and bonds and [Shmoop video on PC monitor]

00:12

they're really a hybrid form of a limit order only instead of limiting the order

00:18

of a hundred shares of Mickey D's at 45 bucks or better the "limit"

00:23

is time-based that is it is placed a minute or less from the close of the

00:30

market like 3:59 p.m. New York time or the open of the market like 9:31 a.m. New

00:36

York time got it so why would someone do this kind of limit order well if a [Man discussing limit order]

00:40

company that day before had printed what looked like a really good quarter but

00:45

upon deep inspection the investor who owned the shares thought otherwise and [Man inspecting company folder]

00:50

you know wanted to dump them well then that investor would want to take

00:53

advantage of a high opening print and just sell it whatever the price was a

00:59

minute or two after the open making the bet that the stock would then trade down

01:04

after bigger smarter better analysis was published on the stock itself and then

01:09

everyone else went to dump it - so what about an at the close order well kind

01:14

of inverse of the same thing here a company's quarter will be announced at [4:28pm shown on digital clock]

01:18

4:30 p.m. New York time tons of excitement leading up to it so

01:22

"everyone" wants to be long the stock ahead of earnings but you think

01:27

earnings will disappoint like you know buy the rumor sell the actual news kind

01:33

of vibe so you want to hold the stock until the last minute that day and then

01:38

you just give the guidance to sell the stock that last minute of trading or at [Investor sells stock to market]

01:42

the close and you're out and now we have arrived at the close of this video... Adios! [Man waving on stage]

Find other enlightening terms in Shmoop Finance Genius Bar(f)