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Paul Tracy

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Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers. While there, Paul authored and edited thousands of financial research briefs, was published on Nasdaq. com, Yahoo Finance, and dozens of other prominent media outlets, and appeared as a guest expert at prominent radio shows and i...

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Updated August 5, 2020

What is Previous Close?

Previous close shows what the price of a stock or market index was when the market closed on the previous trading day.

How Does Previous Close Work?

Over the course of a day as securities are traded, a stock's price will rise and fall based on any number of factors. When the stock exchange closes, the stock's final price is reported. The next day, that price will be shown as the previous close price. 

For example, let's say when the market closed yesterday, Stock ABC's price was $100.52. Today, when I look up Stock ABC, I'll see its previous close was $100.52.

Why Does Previous Close Matter?

By comparing a stock's previous close price to its current price, an investor can tell if that stock's price has increased or decreased.

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