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. Investing

    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 end of the trading day is the price of the last lot of stock that was ...
  2. 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!
  3. 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.
  4. 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.
  5. Options & Futures

    Maximize Profits With Volatility Stops

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

    Employee Stock Options (ESO)

    Employee stock options are a form of equity compensation granted by companies to their employees and executives.
  7. Investing

    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 and sold. What this means is that no trade can occur until one participant ...
  8. Trading Strategies

    How are Marubozo patterns interpreted by analysts and traders?

    Dig deeper into the Marubozo candlestick pattern, when the daily trading of a security never exits the range between opening and closing prices.
  9. Trading Strategies

    What are the most common momentum oscillators used in day trading?

    Take a look at some commonly used momentum oscillators that can also be used for intraday trading, such as stochastic oscillators or the Ultimate Oscillator.
  10. As the number of new employees increases, the marginal product of an additional employee will at some point be less.
    Investing

    More is Less: Diminishing Marginal Returns

    In formal economic terms, the law of diminishing marginal returns states that as the number of new employees increases, the marginal product of an additional employee will at some point be less ...

You May Also Like

Hot Definitions
  1. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  2. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  3. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  4. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  5. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
  6. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
Trading Center