I'm new to this so sorry in advance if this is a stupid question but if SRPT closed at 35.50, and the last after hours trade was for 34.13 does that mean tomorrow when the market opens it will start at 34.13 or will it be back to 35.50?
Also, considering the market is closed during "after hours" how does the price even change? I was under the impression that the only things that could change the price of a stock were volume, news and quarterly earning reports. So if no news or reports came out how could volume as low as "3454" bring us back down 3.86% when it took us all day to gain that thru the 957,383 shares that were traded during market hours?
In a nut-shell: Even though the market is closed, if you have a special account set up through your brokerage firm, you can trade after-hours and pre-market. These are the trades (among these traders) that are causing the change in price when the market is "closed".
My understanding: most often the aftermarket is meaningless or manipulation, unless there are multiple trades and significant volume. In the example above, the big drop represents only one trade. It doesn't matter why it happened because it matters none. The premarket has the potential to effect the opening price if the volume is significant. Always lood at nasdaq, the number of trades and the volume to see whether pre and postmarket is significant. most of the time it is not. IMO it is often manipulation to make things appear different from reality.
That wouldn't be it - if someone had a margin call that expired during today, their broker would have sold the shares before the close. If their call didn't expire until tomorrow and they were stupid enough to sell AH at that price, then they are too stupid to be playing with margin to begin with. To answer recession's question, the price the stock opens tomorrow morning on the NASDAQ is completely independent of today's closing price or any "extended hours" trading activity. The pre-market and after-hours trading activity is done through various private trading networks - whether your broker allows you place orders into these networks is up to them.