Just a quick question. While looking at news items I sometimes see this by share prices. What does it mean and also what effect does it have on the company shares in question. Thks in advance R

See http://www.londonstockexchange.com/ for further explanation


Closing Auction and Closing Price Dissemination - SETS Stocks
The VWAP period (1) commences at 16:20 and lasts for a maximum of 10 minutes. The closing auction call (2) commences at the end of the VWAP period and lasts until approximately 16.35. The system then determines whether a matching price can be calculated for each SETS security. The above indicates the possible scenarios where an extension may be invoked depending on whether market orders are left unexecuted or if the potential auction matching price is outside the price monitoring tolerance. Up to 3 extensions are allowed, 1 Market Order and 2 Price Monitoring extensions. Note that the second Price Monitoring Extension will be the final extension. If at the end of the auction call (including extensions) the potential auction matching price is still outside the price monitoring tolerance, then a volume check is performed, based on half the Normal Market Size of each security (or a minimum 2500 shares). If the auction match volume is sufficient the auction matching price will form the closing price, otherwise the VWAP is utilised (if no trades occur in the VWAP period, the last AT will form the closing price). Note that the Price Monitoring threshold, before an extension is invoked, is 3% (from Reference Price) for FTSE100 securities (SET1) and 5% for all other securities.