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Previous Close

Written By
Paul Tracy
Updated January 16, 2021

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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Paul has been a respected figure in the financial markets for more than two decades. 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.

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