How Do I Buy a Stock Below the Closing Price?


Quick Answer

To buy a stock below the closing price, a person should complete a transaction prior to the termination of a regular trading session, notes the Securities and Exchange Commission official web site. Closing prices have been standardized to a uniform time frame to prevent confusion.

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How Do I Buy a Stock Below the Closing Price?
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Full Answer

The New York Stock Exchange and NASDAQ Stock Market are the two major exchanges in the United States. These exchanges have specific closing hours, as specified by the Securities and Exchange Commission. However, the markets offer after-hours trading, which can provide misleading data to certain investors. This issue has been resolved by the Consolidated Tape Association, which has made closing prices uniform. After-hours prices are now designated with a "T."

Investors can monitor an organization's earnings report and other financial metrics to determine if a stock price is overvalued or undervalued, notes CNN Money. Based on this analysis, an investor can determine if a stock is worth buying. Any purchase that is completed before the close of trading hours will allow an investor to potentially pay for a stock below the closing price. If the stock price increases before closing, the price paid then falls below the closing price. If the stock prices decreases after purchase, the price paid is greater than the closing price.

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