Closing Price
Quick Definition
The last traded price of a security when the market closes for the day.
Key Takeaways
- The closing price is the last official trade price of a regular market session.
- It serves as the benchmark for daily performance, charts, and fund pricing.
- Exchanges use a closing auction to determine a fair final price.
What Is Closing Price?
The closing price is the final price at which a security trades during a regular trading session. It serves as the standard reference point for daily performance measurement, portfolio valuation, and technical analysis. Mutual funds use the closing net asset value (NAV) to price share purchases and redemptions. After-hours trading may push prices higher or lower, but the official closing price remains the benchmark. Exchanges use a closing auction process to determine the final price, aggregating buy and sell orders in the last minutes of trading to establish a fair and transparent close. The closing price is used to calculate daily returns, moving averages, and most charting indicators.
Closing Price Example
- 1Apple closed at $182.50, down $1.20 (−0.65%) from the previous close.
- 2A mutual fund investor placing an order at 2 PM receives the 4 PM closing NAV price.
Related Terms
Opening Price
The price at which a stock first trades when the market opens for the day, determined by pre-market supply and demand.
After-Hours Trading
Buying or selling stocks outside regular market hours (9:30 AM–4:00 PM ET), typically between 4:00 PM and 8:00 PM ET on weekdays.
Bid Price
The highest price a buyer is currently willing to pay for a security — it is the price you will receive if you sell immediately.
Ask Price
The lowest price at which a seller is willing to sell a security, also known as the offer price — it is the price a buyer must pay to purchase immediately.
Stock
A security representing ownership in a corporation, entitling the holder to a share of profits and voting rights.
Initial Public Offering (IPO)
The first sale of a company's stock to the public, transitioning it from private to publicly traded.
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