Stock trading situation that occurs when there is a considerable difference (gap) in a stock's opening price and its closing price on the previous day. This gap often indicates an extraordinary development such as a takeover bid. Typically, if the gap does not close within an hour or so, it may mean that the increase or decrease trend in the stock's price will continue. Both AMEX and NYSE tend to delay the stock's opening if a related extraordinary event occurs.
Related information about gap opening:
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