Definition

1. Noun:
   • (Finance, Stock Market) The final price at which a security (such as a stock, bond, or commodity) is traded on a given trading day. This price is established by the last transaction executed before the market closes for the day. It is a crucial benchmark used for tracking daily performance, calculating net asset values, and marking portfolios to market.

Examples of Usage

• Noun:
  • The stock's closing price was $50.25, up two dollars from the previous day.
  • Analysts compare the opening and closing prices to gauge market sentiment.
  • The mutual fund's net asset value is calculated using the closing prices of all its holdings.

Advanced Usage

• "to settle at a closing price": to finish trading for the day at a specific final price.
  • The index settled at a record closing price.
• "adjusted closing price": a version of the closing price that accounts for corporate actions like dividends, stock splits, and rights offerings to provide a more accurate reflection of historical value.
  • For long-term chart analysis, you should always use the adjusted closing price.

Variants and Related Words

• Closing: (n) The end of the trading session. (e.g., )
• Opening Price: (n) The price of the first transaction for a security on a given trading day.
• Settlement Price: (n) In derivatives markets, the official price used for daily mark-to-market and determining margin requirements, often equivalent to the closing price or a calculated average.

Synonyms

• Final Price: The last price recorded in a session.
• Last Price: The price of the most recent trade.

Related Phrases

• Close higher/lower: To finish the trading day with a closing price that is above or below the previous day's closing price.
  • The tech sector closed sharply lower on the news.
• At the close: At the very end of the trading session.
  • A large order came in at the close, pushing the price up.

Related Idioms/Expressions

• "What mattered was the closing price.": An expression emphasizing that the final outcome or result is the most important thing, regardless of fluctuations during the process.
  • The stock swung wildly all day, but what mattered to investors was the closing price.

Noun

1. (stock market) the price of the last transaction completed during a day's trading session