Definition of Opening bell:
The opening bell refers to the moment a securities exchange opens for its normal daily trading session. The time and conditions of the opening bell differ from one exchange to another. Since 1985, the New York Stock Exchange (NYSE) has used the opening bell to start its trading session at 9:30 a.m. Eastern time. At the NYSE there is a physical bell and an automated ringer that sounds at the beginning of each trading day. On the Nasdaq exchange, where this is no physical trading floor, the opening of the market is referred to as the opening bell, but it is symbolic in significance.
Physical trading floors have all but disappeared over the years with the rise of electronic trading. Investors and traders use the term opening bell to describe the opening of a given market. The physical ringing of the opening bell has become a ceremonious event where dignitaries visiting the stock markets or companies that are trading for the first day are given the honor of ringing the bell.
An audible signal indicating the start of the regular trading day on an exchange. Representatives of listed companies, celebrities and newsmakers often celebrate notable events by performing the honor of ringing the opening bell at an exchange. See Trading Hours.
How to use Opening bell in a sentence?
- It is largely symbolic since the majority of trading is electronic and trading is rarely conducted on a physical trading floor.
- The opening bell represents the start of a regular trading session on an exchange.
- The opening bell gives occasion for exchanges to make news and better market securities during an initial public offering.
Meaning of Opening bell & Opening bell Definition