Definition of closing price
: the price of a stock or bond at the end of a day the previous day's closing price
Word by Word Definitions
: a concluding part (as of a speech)
: a closable gap (as in an article of clothing)
: a meeting of parties to a real-estate deal for formally transferring title
Financial Definition of CLOSING PRICE
What It Is
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 It Works
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 It Matters
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.
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