What is the Closing Bell?
The closing bell is a term used to describe the time that an exchange's daily trading session ends.
How Does the Closing Bell Work?
Each trading day, the New York Stock Exchange (NYSE) rings its bell at 4 p.m. Eastern, signifying that the exchange floor is closing for the night.
Although the New York Stock Exchange is the only exchange that uses an actual bell to end trading, the term is generally used for all exchanges.
Why Does the Closing Bell Matter?
The closing bell does not necessarily mean the end of all trading for securities that trade on the exchange that is closing. In fact, trading may continue on electronic communication networks (ECNs). This period is known as a pre and post-market trading.