10.15What is listing day?
1What is it?
Listing day is the first day the shares trade on NSE/BSE.
2Why does it exist?
Price discovery happens in a special pre-open session; the opening price can be far above or below the issue price.
3Quick revision
- First trading day.
- Special pre-open price discovery.
- Very volatile.
4Knowledge check
Q1. When is listing day?Show answer
T+3 after issue close.
Q2. Can a stock list below issue price?Show answer
Yes.
Q3. Why is listing day volatile?Show answer
First-time price discovery and many short-term traders.