DEFINITION of 'Closing'

The end of a trading session. The closing of a trading day halts trading on exchanges. After-hours trading still occurs until 8 pm.

An action which will eliminate your position in a security. Closing a position is done by taking an action which will take away your exposure to risk.

The final procedure in a sale in which documents are signed and recorded. This is the time when the ownership of the property is transferred.

BREAKING DOWN 'Closing'

The close of the New York Stock Exchange is marked by ringing a bell at 4 pm EST. The closing price is often quoted and used when looking at historical prices. For example if you own a stock, then you can close your position by selling it.

Closing is often referred to in sales as the act of convincing the purchaser to actually purchase, often seen as the toughest part.

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RELATED FAQS
  1. Why are the bid and ask quotes usually so far away from each other in after-hours ...

    After-hours trading is defined as the exchange of securities outside of an exchange's specified regular trading hours (usually ... Read Answer >>
  2. Does the closing price have to equal the last price traded?

    Logically and theoretically, the last price traded should be the same as the closing price of a stock. However, the way we ... Read Answer >>
  3. What trends and data influence after-hours traders the most?

    Learn about the specific information that after-hours traders review to influence their trading. Read Answer >>
  4. When do stock market exchanges close?

    Learn about stock exchanges, the main function of stock market changes and the opening and closing times of some major stock ... Read Answer >>
  5. What is after-hours trading? Am I able to trade at this time?

    After-hours trading (AHT) refers to the buying and selling of securities on major exchanges outside of specified regular ... Read Answer >>
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