Closing Price

DEFINITION of 'Closing Price'

The final price at which a security is traded on a given trading day. The closing price represents the most up-to-date valuation of a security until trading commences again on the next trading day.

BREAKING DOWN 'Closing Price'

Most financial instruments are traded after hours (although with markedly smaller volume and liquidity levels), so the closing price of a security may not match its after-hours price. Still, closing prices provide a useful marker for investors to assess changes in stock prices over time - the closing price of one day can be compared to the previous closing price in order to measure market sentiment for a given security over a trading day.

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RELATED FAQS
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    The simple moving average (SMA) is a widely used technical used by traders and investors. It can be calculated for different ... Read Full Answer >>
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  3. Why don't stocks begin trading at the previous day's closing price?

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