What is an adjusted closing price?

The closing price is the raw price, which is just the cash value of the last transacted price before the market closes. The adjusted closing price factors in corporate actions, such as stock splits, dividends, and rights offerings. The adjusted closing price can obscure the impact of key nominal prices and stock splits on prices in the short term.

What is a closing price on a stock exchange?

When trading is done for the day on a stock exchange, all stocks are priced at close. The price that is quoted at the end of the trading day is the price of the last lot of stock that was traded for the day. This is referred to as the stock's closing price .

Does a stock's adjusted closing price reflect rights offerings?

A stock's adjusted closing price also reflects rights offerings that may occur. A rights offering is an issue of rights given to existing shareholders, which entitles the shareholders to subscribe to the rights issue in proportion to their shares.

Does the closing price reflect dividends?

The closing price of a stock is the key point of reference for tracking its price over time. However, the closing price will not reflect the impact of cash dividends, stock dividends, or stock splits. An investor can calculate the change in price or use a historical price service.