Business, Legal & Accounting Glossary
The closing bell is a signal which marks the end of an exchange’s daily trading session. Not all exchanges use an actual bell but all exchanges have a closing bell signal which marks the official end of the trading session. Even though extended trading hours are reducing the importance of the closing bell, the closing bell still marks the end of trading each day for many stocks and is a useful tool for traders who wish to buy or sell on the close. Prices in effect at the closing bell are important in determining a daily portfolio value and upticks or downticks in prices at the closing bell are also useful in determining bull and bear trends in the market.
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This glossary post was last updated: 4th February, 2020