Why stock market's close is now an auction - explained
For over three decades, the closing price was the volume-weighted average (VWAP) of all trades between 3:00 pm and 3:30 pm. Nobody actually traded at
For over three decades, the closing price was the volume-weighted average (VWAP) of all trades between 3:00 pm and 3:30 pm. Nobody actually traded at that price. It was a calculation, not a transaction. For long-term investors, nothing changes. For index funds and traders, the closing routine is now different.
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