Closing Price

Written By:
Paul Tracy
Updated August 5, 2020

What is the Closing Price?

A closing price is the trading price of a security at the end of the trading day. In real estate, it is the price at which a piece of property sells.

How Does the Closing Price Work?

The New York Stock Exchange has the most famous closing bell (so famous that the term has a service mark). At 4 p.m. Eastern time, the closing bell rings. At that time, the last trading price for each security on the exchange becomes the closing price.

Why Does the Closing Price Matter?

The closing price does not necessarily mean the end of all trading on that security for the day. In fact, it simply means the floor of the exchange is closed. After-hours markets remain open, as do other exchanges in other countries and time zones, which provides opportunity for the price to change.