What is the closing price?

On each trading day, financial markets have an opening time and a closing time. At the close of the trading day, each securities there is a final selling price. This is the closing price.

Where have you heard the closing price?

The famous closing bell on Wall Street indicates the closing time of the stock exchange at 4 p.m. Eastern Standard Time (EST) every day. After the bell rings, the last transaction price is the closing price of the security.

The information you need to know about the closing price...

It must be kept in mind that market activity can continue after the close of trading, which is only when the stock exchange is closed. Trading will still occur after the close, and exchanges in other time zones will remain open.

The closing price does not take into account corporate actions such as mergers and acquisitions, dividends and stock splits. If the company's actions significantly affect the value of the securities, adjustments will be made based on the closing price to reach an adjusted closing price.

Comparing the closing prices of securities on different trading days can plot the direction of changes in the value of securities over a specific period of time, which is helpful in analyzing historical returns.