Multiple Choice
Which of the following is a characteristic of a well-managed appointment book?
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1. Introduction to Accounting
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At the start of the trading day, what does the 'opening price' of Target Corporation (TGT) represent?
A
The price at which the first trade of TGT shares occurs when the market opens.
B
The price at which the last trade of TGT shares occurs before the market closes.
C
The highest price at which TGT shares are traded during the day.
D
The average price of TGT shares throughout the trading day.
Verified step by step guidance1
Understand the concept of 'opening price' in the stock market. The opening price represents the price at which the first trade of a stock occurs when the market opens for trading.
Analyze the options provided in the problem. The correct definition of 'opening price' should align with the concept explained in step 1.
Option 1 states: 'The price at which the first trade of TGT shares occurs when the market opens.' This matches the definition of 'opening price' and is likely correct.
Option 2 states: 'The price at which the last trade of TGT shares occurs before the market closes.' This describes the 'closing price,' not the 'opening price.'
Option 3 and Option 4 describe other metrics, such as the highest price during the day (high price) and the average price throughout the day, which are unrelated to the 'opening price.'
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