Learning About Mutual Fund Closing Prices

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Learning About Mutual Fund Closing Prices

What Are Mutual Fund Closing Prices?

Mutual fund closing prices are the final prices that securities are traded at on a trading day. It is representative of the most current value of a security until trade resumes again the next day. However, many financial instruments are traded after hours. Due to this, a security’s closing price may not actually be the rate at which it is traded after-hours. Regardless, mutual fund closing prices are a good way for investors to determine the changes that stock have undergone over time. You can compare closing prices between several days in order to decide whether or not a share is really secure.

The New York Stock Exchange Closing Bell

The closing bell is used to signal the onset mutual fund closing prices, as it rings at the end of every trading session. The closing bell is rung at 4: 00 pm EST. In the late 1800s and early 1900s, a gong was used for this task. Now the same bell is in use that was brought on to the scene then. While the New York Stock Exchange is a prominent market that still goes by this traditional, not all markets do. The NY Stock Exchange had special guests come in to ring the bell starting in the year 1995. Before this, it was the floor manager’s responsibility to ring the bell. The New York Stock Exchange has four different sections equipped with bells that all ring once the button for them has been pressed.

At-The-Close Orders

There are specific orders that can be given regarding mutual fund closing prices, one of which is an at-the-close order. An order is an instruction from a brokerage or customer regarding the purchase of a security. These usually come with specific instructions. An at-the-close order comes with the directions that the trade be made as the market is closing, or as close to the closing of the market as possible. This isn’t a total guarantee that the price will be the same as the closing prices, but you should still end up fairly close. Conversely, an at-the-opening order is an order that specifies a trade to be made at the beginning of a market day. Again, this order does not guarantee that the trade will actually be made at opening price. Held orders are market orders that must be carried out as soon as possible. Because there is no time to waste, traders under held orders will more than likely not bother with attempting to carry out much discretion in finding a price.

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