A closed period is an interval of time that a business or organization reserves for assessing its financial results. During this period, no transactions — including sale and purchase activities, stock trading, and fund deposits — are allowed. This setup allows the company to evaluate its performance in a controlled environment without external interference. It also gives businesses the opportunity to identify irregularities or discrepancies in their books and records. The closed period helps ensure accurate and reliable financial reporting, which is essential for developing sound strategic plans and making informed investment decisions.