Close

AAA

DEFINITION of 'Close'

The end of a trading session in financial markets. "Close" refers to market close, or the end of the day's trading. It can also refer to the process of exiting a trade. It also often refers to the final procedure in a financial transaction in which contract documents are signed and recorded.

INVESTOPEDIA EXPLAINS 'Close'

The close of the New York Stock Exchange, which is marked by ringing a bell, is perhaps the most visible example of a market close.


Security prices at market close, or closing prices, are more important than intra-day prices for performance measurement. For example, the price performance of all securities on an equity index over the past year would be based on prices at today's close, compared with prices at close a year ago.


Since closing prices are widely followed and disseminated, they may occasionally be subject to manipulation by fraudsters, especially for micro-cap stocks with limited liquidity. This prohibited practice is called "high close."

RELATED TERMS
  1. Opening Cross

    A method used by the Nasdaq to determine the opening price for ...
  2. After The Bell

    A phrase used to describe news, earnings reports and other activities ...
  3. Closing Bell

    A bell that rings to signify the end of a trading session. The ...
  4. At-The-Close Order

    An order specifying that a trade is to be executed at the close ...
  5. High Close

    A tactic used by stock manipulators; they make small trades at ...
  6. Open

    1. An unexecuted order that is still valid. An open order is ...
Related Articles
  1. How do I calculate the adjusted closing ...
    Investing

    How do I calculate the adjusted closing ...

  2. Getting To Know The Stock Exchanges
    Options & Futures

    Getting To Know The Stock Exchanges

  3. To Rent Or Buy? There's More To It Than ...
    Personal Finance

    To Rent Or Buy? There's More To It Than ...

  4. To Rent Or Buy? The Financial Issues
    Home & Auto

    To Rent Or Buy? The Financial Issues

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center