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

Hot Definitions
  1. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  2. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  3. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  6. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
Trading Center