Definition
Closing can pertain to various fields, each detailed below:
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Financial Markets: The closing price is the final trade price of a security at the end of a trading day. It often serves as a benchmark for stock performance and is crucial in the determination of daily trading ranges and valuations.
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Stock Exchange Timing: The term may also refer to the last half-hour of a trading session on stock exchanges, often marked by high volume and volatility as traders finalize their positions for the day.
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Accounting: In accounting, closing involves the closing of the books, which is the transfer of revenue and expense accounts at the end of an accounting period to summarize finalized figures for that period.
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Business Agreements: Closing can denote the finalizing or consummating of a sale or agreement.
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Computing: In computing, closing can mean multiple actions:
- Exiting a file or shutting down a program (quit is often used but differs slightly in functionality with respect to different operating systems).
- Specifically in Windows, closing an application window exits the application, while minimizing it reduces the window to an icon.
- On Macintosh systems, closing a window is often synonymous with minimizing, while quit fully exits the application.
Examples
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In the stock market, the closing price is reported as part of daily financial news, such as in “Today’s closing price for XYZ Corporation was $45.67”.
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During the final half-hour of a trading session, you might hear statements like, “Trading volumes spiked during the closing period as investors rushed to settle their trades.”
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After determining all revenue and expenses for the year, an accountant will close the books to prepare the annual financial statements.
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Legal documentation and final signatures are often required to close real estate transactions or business mergers.
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When working on a report, you might close a document in Microsoft Word by clicking the ‘Close’ button, or you might quit the application entirely if you’re done working for the day.
FAQs
What is the significance of the closing price in financial markets?
Answer: The closing price is essential for investors as it serves as a reference point for the next trading day. It is used in technical analysis and stock performance metrics.
How often is the closing of books performed in accounting?
Answer: The closing of books typically happens at the end of each accounting period, which could be monthly, quarterly, or annually.
What does ‘closing a deal’ involve in business terms?
Answer: Closing a deal involves finalizing the terms, signing contracts, and often exchanging products, services, or financial instruments.
How does closing differ from quitting an application on computers?
Answer: Closing an application may simply minimize it or shut a specific file, while quitting ensures the application exits completely.
What specific steps are involved in the closing of books?
Answer: Steps include reviewing preliminary balances, making adjusting entries, preparing financial statements, and transferring summaries to account balances.
Related Terms
- Open: The beginning of a trading day or the act of initiating a document or file.
- Settle: Bringing an outstanding trade to completion.
- Adjusting Entries: Entries made in accounting to update balances.
- Finalizing: Completing or making conclusive decisions.
- Minimize: Reducing a window to an icon on macOS.
- Quit: Exiting an application entirely.
Online Resources
Suggested Books
- Accounting Made Simple by Mike Piper
- Security Analysis by Benjamin Graham and David Dodd
- Principles of Accounting by Belverd E. Needles
- The Complete Guide to Real Estate Closings by Sandy Gadow
- Computing Fundamentals by Peter Norton
Fundamentals of Closing: Business Basics Quiz
Thank you for exploring various aspects of ‘closing’ across different fields! Keep sharpening your knowledge through continuous learning and practical application.
