Closing PreparedStatements

Does use of PreparedStatements and ResultSets creates a "new database instance" everytime they are used? Or, whith other words, if I use a PreparedStatement and a ResultSet, should I close them after every use or once I finish?

Example:

while (...){
        p = connection.prepareStatement(...);
        r = p.executeQuery();
        while (r.next()) {
        ....
        }
 }
 // We close at the end. Or there are any other p and r still opened...?
 p.close();
 r.close();

OR

while (...){
        p = connection.prepareStatement(...);
        r = p.executeQuery();
        while (r.next()) {
        ....
        }
        p.close();
        r.close();
 }

NOTE: Of course I would use try and close properly, this is just an example.