What is in finance, what is the previous closure?
In Finance, the previous closure is a term used to refer to the price of security before the end of the last market. For example, the last price at which certain stocks were traded on Monday would be referred to as the previous near until the market reopened on Tuesday morning. In addition, the price at which the shares were traded on Friday before closing would be the previous closure until the market reopened on Monday morning. The previous closure is not only related to stock prices. It also applies to other types of securities, including futures, commodities and bonds.
Previous closure is often used as a way of comparing the price of security from one day to another. Although security can be traded for a number of prices during the day, the closing price is used to compare everyday business. It is a metric used by many financial analysts and financial intelligence programs to discuss events in Market daily shares and prepare for or even forecasts the next day.Drastic shifts in previous safety closure are often carefully monitored and speculated, especially if security is popular between analysts and investors.
Sometimes the previous closure is manipulated by investors to make the stock look as if they were doing better on a given day than in reality. This is done by purchasing a small amount of security at an artificially high price. The previous closure will look artificially high and can attract the attention of other investors called "highly closed". In order to create high closure, security must be purchased at an artificially high price in the last minutes of trading before closing. Otherwise, further security purchase may be made at a more reasonable price, so the previous closure to securities closer to the lower price of the price for which it was traded throughout the day.
Cricile securities are still traded on a closing bell. As such a previous closure, it may not reflect what happens after closing. However, it is still used as a useful metric to discuss the events on the daily market and preparation for the following day.