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Closing Price

The closing price is the last price at which a security is traded during a regular trading session on a given day. It represents the final price agreed upon by buyers and sellers before the market closes and is considered an important indicator of a security’s daily performance. The closing price is widely used by traders, analysts, and investors to assess the performance of stocks, bonds, commodities, or other financial instruments and serves as a reference point for future trades.

Example

If a stock’s last trade on a given day occurs at $150 per share, that price becomes the closing price for that trading session, and it will be used as a reference for the next day’s opening price.

Key points

• The closing price is the last traded price of a security during a regular trading session.

• It serves as a key reference point for future trades and analysis.

• Used to assess the performance of stocks, bonds, commodities, and other financial instruments.

Quick Answers to Curious Questions

It represents the last price traded for a security during a regular session and serves as an important benchmark for evaluating the performance of the security.

It is used to track daily performance, set opening prices for the next session, and evaluate trends for technical analysis.

Not necessarily. It reflects the final agreed price between buyers and sellers but may not fully represent after-hours trading or other factors influencing the security’s true value.