What is Close? What Does Closing Price Mean?

closing price

On the stock market, individuals purchase shares of a firm and then sell them in order to maximize profit. The price of a stock can change during the day. The performance of the stock might assist people to determine whether to hold or sell it. Stocks are often bought and sold between the opening & closing hours of the market. So when the markets finish for the day, the close refers to the completion of a trading period. The procedure of leaving a trade or the final phase in a financial transaction wherein the contracts are approved and registered is referred to as the close.

Independent from the exchange or kind of instrument, knowing the time markets start and close is critical for effective trading. For traders, understanding how and when to close off a transaction is equally crucial. The closing bell of the NYSE (New York Stock Exchange) is perhaps the most obvious illustration of a market close, however closing timings differ amongst markets & platforms.

Closing Price

The very last price with which a stock sells throughout a standard trading period is referred to as the “closing price.” Normal trading hours for various United States markets operate between 9:30 a.m.-4:00 p.m. EST. Closing prices are valuable indicators for traders who employ them to determine how stock values have changed with time. And in the age of 24-h trading, every asset has a closing price.  Till the markets open on the next trading day, this price is recognized as the most accurate assessment of a stock or a different investment.

To assess movements in market attitude about a stock, the closing price solely on a single day may be contrasted with the closing price on the day before, a month previously, or a year earlier.

After-hours trading is available in a variety of venues, as well as some financial journals and market information providers consider the last trade within those after-hours markets as the close price. Many take the close price at 4:00 p.m.

Considerations

The US stock market operates on a set schedule. And though it has a predetermined opening and closing time, it is occasionally changed. The New York Stock Exchange is open for business from 9:30 a.m.- 4:00 p.m. EST.  After-hours trades close at 8:00 p.m. EST, with pre-market sessions beginning at 6:30 a.m. EST. From 8:00 a.m.-5:00 p.m. EST, the bond markets are typically open for a little more. Market periods for futures differ greatly depending on the platform and asset; investors can visit the exchanges’ webpages for further information.

Various holidays are acknowledged by the market, and it is closed on such dates. Here’s a list below regarding the recognized holidays:

  • New Year’s Day
  • Martin Luther King Jr. Day
  • Washington’s Birthday
  • Good Friday
  • Memorial Day
  • Labor Day
  • Thanksgiving Day
  • Christmas

On occasions when the exchanges are shut, stocks aren’t traded on the New York Stock Exchange (NYSE) or the National Association of Securities Dealers Automated Quotations (NASDAQ).

Other Countries

The New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotations (NASDAQ) are the two main stock exchanges in the US while other nations have their own stock exchanges. Borsa Istanbul, or BIST, is located in Turkey. The SIX Swiss Exchange, or SWX, is a stock exchange in Switzerland. These international stock markets have different opening & closing times based on the country and any holidays or occasions it recognizes.

SEE ALSO: How To Buy Company Stocks?

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Caroline Tetra

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