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Definition: Closing Date
In general, closing date is referred as the point of time in a negotiation when ownership of goods changes hands. Going by the definition, closing date is decided during negotiation phase with the mutual agreement of both the parties. On this day, the ownership of goods./properties/patents etc. formally transferred from one party to another.
However, an important point to remember is that it is not necessary to have financial transaction on this day. It may occur before or more often after the closing date which is decided in the negotiation phase itself. This date may be some days or some weeks later than that date of negotiation.
Closing Date in Banking:
In banking terminology, closing date is the date on which asset backed securities are verified and later delivered to the user.