Close

Stock trading dictionary: meaning, example and how traders use it.

Last updated: October 17, 2026

Definition: Close, or closing price, is the final price at which a stock trades during the regular market session, which on the NYSE and Nasdaq ends at 4:00 p.m. Eastern, and it is the standard price used for daily charts and performance.

How the closing price is determined

US exchanges do not simply use the last random trade of the day. The NYSE and Nasdaq each run a closing auction (the closing cross on Nasdaq) that matches buy and sell orders submitted for the close at a single price. Market-on-close and limit-on-close orders feed this auction, and the price that clears the most shares becomes the official close for the listing exchange.

The auction concentrates heavy volume into the final moments of the regular market hours, which makes the closing price a robust reference.

Because so much trading happens at the close, the final minutes of the session can be volatile, especially on days when indexes rebalance or options and futures expire. Exchanges publish order imbalance information before the auction so participants can see whether there are more buy or sell orders waiting, which helps attract offsetting orders and limits sharp price jumps at the bell.

Why the close matters

  • Daily percentage changes are measured from the prior close.
  • Mutual funds and many ETFs use closing prices to calculate net asset value.
  • Index funds rebalance at the close to match their benchmarks.
  • Technical traders treat a close above or below a key level as more meaningful than an intraday move.

Close example

Suppose a stock opened at $30, traded as high as $31.40 and as low as $29.60, and the closing auction set the price at $31.10. On a daily chart, that day's candle ends at $31.10. If the prior close was $30.50, the stock is reported as up $0.60, or about 2%. If the stock then trades at $30.80 in after-hours trading, the official close stays $31.10; the after-hours price is reported separately.

Close vs adjusted close

Historical data often includes an adjusted close, which revises past closing prices for stock splits and, in many data sets, cash dividends. For example, after a 2-for-1 split, earlier closes are halved so the chart does not show a false 50% drop. Use the adjusted close to calculate long-term returns and the raw close to see what the stock actually printed on a given day.

Close vs open, high and low

The close is one of four standard daily prices, together with the open, high and low. Where the close falls within the day's range carries information: a close near the high suggests buyers stayed in control into the bell, while a close near the low shows persistent selling pressure. Many indicators use the close as their main input.

Frequently asked questions

What time is the stock market close?

The regular session on the NYSE and Nasdaq closes at 4:00 p.m. Eastern time, except on scheduled early-close days.

Is the after-hours price the closing price?

No. The official closing price comes from the regular session's closing auction. After-hours trades are reported separately and do not change the official close.

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For information only, not investment advice. See the disclaimer.