The closing price is a term linked to the stock market. It refers to the price with which an asset closes in a trading day bag. It is an extremely important value since it will be with this price that the opening auction of the next business day will begin. In other words, the important function of determining the price falls on the closing price. opening quote of an asset the next day.
Why is the closing price important?
In general, it is the value communicated by the media because it can summarize, in one piece of information, what has happened in the market during the trading day. The closing price is essential to calculate the price curves where the minimum and maximum price of an asset is taken into account in a trading session. One of the most important pieces of information we can extract from the closing price is that it offers a broader idea of what the next session will look like. If it closes at a maximum, it means that an upward trend will be marked in the next session and vice versa.
In keeping with the term, it is vital to know that trading activity can continue after the close of trading. In fact, not all exchanges in the world close at the same time. The closing prices do not include corporate actions (mergers and acquisitions) as these can alter the closing price. These corporate actions generally have a direct effect on the price of an asset.
One of the most useful data for analysis is to compare the closing prices. This analysis allows, on the one hand, to have a clearer idea about the fluctuations of the price at a specific time, and on the other hand, evaluate and analyze the performance record or also called the historical performance.