Close

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.

BREAKING DOWN '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."

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RELATED FAQS
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    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 >>
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