Common Gap
Common Gap is a financial term used to describe the difference between the current market price of a security and the price at which it was last traded. This gap is usually caused by a lack of liquidity in the market, meaning that there are not enough buyers or sellers to keep the price stable. The size of the gap can vary depending on the security and the market conditions, but it is typically small. Common gaps are often seen in stocks, bonds, and other securities.
History of Common Gap
The concept of a common gap has been around since the early days of the stock market. It was first used to describe the difference between the price of a security at the close of one trading day and the opening price of the next day. Over time, the term has been used to describe any gap between the current market price and the last traded price. Common gaps are often seen in stocks, bonds, and other securities.
Comparison Table
| Security | Current Price | Last Traded Price | Common Gap |
|---|---|---|---|
| Stock A | $10.00 | $9.50 | $0.50 |
| Stock B | $20.00 | $19.00 | $1.00 |
| Bond C | $30.00 | $29.50 | $0.50 |
Summary
Common Gap is a financial term used to describe the difference between the current market price of a security and the price at which it was last traded. This gap is usually caused by a lack of liquidity in the market, meaning that there are not enough buyers or sellers to keep the price stable. The size of the gap can vary depending on the security and the market conditions, but it is typically small. For more information about Common Gap, you can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Gap Up
- Gap Down
- Breakaway Gap
- Exhaustion Gap
- Common Stock
- Bond
- Liquidity
- Market Price
- Last Traded Price
- Price Gap
