Closing Price

Posted in Finance, Accounting and Economics Terms, Total Reads: 908

Definition: Closing Price

Closing price is the final price of a stock or a bond at the end of a trading day in a financial business. This price determines the most recent and up-to-date value of a security until the trading process commences on the next trading day.

Some securities are traded after hours also, so the closing price of a security may not match with the afterhours. However, Closing price is widely used to assess the trends in stock prices over time.

By comparing or analyzing closing prices of securities for multiple days, market sentiment for that particular security can be measured. In India, the regular trading session commences at 09:15 A.M. and closes at 03:30 P.M. while the closing session is held between 03:40 P.M. and 04:00 P.M.

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