How is the closing price determined without closing auction?

How is the closing price determined without closing auction?

• A. Opening price
• B. Reference price
• C. Last price established in continuous trading
• D. Maximum price

Answer: (C)

In markets without a closing auction, the official closing price is the last price at which a trade occurred during the continuous trading session. This last traded price serves as the day's closing price because there isn’t a separate auction that determines a price at the close. The opening price is the price at market open, the reference price is a separate benchmark used for checks or settlements, and the maximum price is simply the day’s high—none of these define the close in the absence of a closing auction.

In markets without a closing auction, the official closing price is the last price at which a trade occurred during the continuous trading session. This last traded price serves as the day's closing price because there isn’t a separate auction that determines a price at the close. The opening price is the price at market open, the reference price is a separate benchmark used for checks or settlements, and the maximum price is simply the day’s high—none of these define the close in the absence of a closing auction.