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What’s a stock’s real closing price?

by on
in Small Business Tax

Q: I've invested in several stocks and mutual funds. I could swear that the closing prices I see on TV news programs at night are different than the ones in the morning paper the next day. Is this possible? D.D.K., Richmond, Va.

A: Yes. The closing price generally refers to the final price at which a stock trades during a regular trading session. For primary exchanges such as the New York Stock Exchange, American Stock Exchange and NASDAQ, that means the price at the 4 p.m. closing. But some financial publications and other media outlets may post the last trading price in the after-hours market or a composite of the average final price of the primary market and the five regional markets. Note: Make sure you know the exact price before you complete any transactions.

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