Closing Price

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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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Price Change

    The difference in the cost of an asset or security from one period ...
  2. Closing Quote

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  3. At-The-Close Order

    An order specifying that a trade is to be executed at the close ...
  4. Closing Bell

    A bell that rings to signify the end of a trading session. The ...
  5. Previous Close

    A security's closing price on the preceding day of trading. Previous ...
  6. High Close

    A tactic used by stock manipulators; they make small trades at ...
RELATED FAQS
  1. 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 ... 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 >>
  3. 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 Full Answer >>
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