Closing Price
The final price at which a security trades during a regular market session, used as the official daily reference price.
What is Closing Price?
The closing price is the last price at which a security is transacted during the regular trading session before the market closes for the day. On the NYSE and Nasdaq, the regular session ends at 4:00 PM Eastern Time. The closing price is determined by a closing auction that matches buy and sell orders accumulated at the end of the session, ensuring an orderly and representative final price. It is the most widely referenced price in financial markets: indices are calculated using closing prices, mutual fund NAVs are struck at closing prices, options expire based on closing prices, and investment performance is measured using closing prices. Closing prices appear on financial websites, brokerage statements, and press reports as the official daily price. They differ from after-hours prices, which are set in extended trading sessions but carry less volume and liquidity.
Example
The S&P 500 index is recalculated at the end of each trading day using the closing prices of all 500 constituent stocks. If Apple closes at $185.50, that price is used in the index calculation—not any after-hours price. Mutual funds and ETFs that track the S&P 500 also use closing prices to compute their daily net asset values.