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. At-The-Close Order

    An order specifying that a trade is to be executed at the close ...
  3. Closing Bell

    A bell that rings to signify the end of a trading session. The ...
  4. Open

    1. An unexecuted order that is still valid. An open order is ...
  5. After The Bell

    A phrase used to describe news, earnings reports and other activities ...
  6. High Close

    A tactic used by stock manipulators; they make small trades at ...
RELATED FAQS
  1. How do I calculate the adjusted closing price for a stock?

    When trading is done for the day on a recognized exchange, all stocks are priced at close. The price that is quoted at the ... Read Full Answer >>
  2. Why don't stocks begin trading at the previous day's closing price?

    Most stock exchanges work according to the forces of supply and demand, which determine the prices at which stocks are bought ... Read Full Answer >>
  3. How can I calculate funds from operation in Excel?

    In general, the terms "work in progress" and "work in process" are used interchangeably to refer to products midway through ... Read Full Answer >>
  4. Is it better practice to use a stop order or a limit order?

    Both stop orders and limit orders have their advantages and disadvantages; traders need to decide between the two based on ... Read Full Answer >>
  5. How do day traders capture profits from the difference between bid and ask prices?

    Day traders capture profits from the difference between bid and ask prices by scalping stock. Sensing that a stock is going ... Read Full Answer >>
  6. When does Q4 start and finish?

    Most companies such as Facebook have financial years that end on December 31st. For these companies, the fourth quarter begins ... Read Full Answer >>
Related Articles
  1. Options & Futures

    Getting To Know The Stock Exchanges

    Here are the answers to all the questions you have about stock exchanges but are too afraid to ask!
  2. Personal Finance

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

    Your lifestyle, level of commitment and the trade-offs need to be carefully weighed.
  3. Home & Auto

    To Rent Or Buy? The Financial Issues

    Thinking of buying a home? We look at the initial and ongoing costs, as well as the so-called benefits.
  4. Options & Futures

    Maximize Profits With Volatility Stops

    Find out which type of volatility stop fits your trading objectives.
  5. Options & Futures

    Employee Stock Options (ESO)

    Employee stock options are a form of equity compensation granted by companies to their employees and executives.
  6. Trading Strategies

    How To Tackle Intraday Volume

    Measure the flow of intraday volume to estimate the emotional intensity of the crowd.
  7. Professionals

    Top Strategies on How to Become a Stock Broker

    Gunning to be a stock broker and want an edge? Here's some veteran advice.
  8. Economics

    What's Involved in Customer Service?

    Customer service is the part of a business tasked with enhancing customer satisfaction.
  9. Economics

    What is Involved in Inventory Management?

    Inventory management refers to the theories, functions and management skills involved in controlling an inventory.
  10. Trading Strategies

    10 Steps To Becoming A Day Trader

    Want to be the master of your career by becoming a full-time day trader? Follow these 10 steps to be a successful trader.

You May Also Like

Hot Definitions
  1. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  2. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  3. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  4. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
Trading Center