Price Change
Price change refers to the difference between a financial asset’s current price and its price during a previous time period, such as the previous trading day or a year ago. Price changes can be expressed as an absolute value or as a percentage, helping investors measure the performance of stocks, bonds, or other assets over time. Understanding price changes is crucial for assessing trends, making investment decisions, and calculating returns.
Example
A stock that closed at $100 yesterday and opens at $105 today has experienced a price change of $5 or 5%.
Key points
• The difference between an asset’s current price and its price at a previous time.
• Expressed as an absolute value or percentage.
• Helps investors assess trends, performance, and returns.
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