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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.

Quick Answers to Curious Questions

It allows investors to monitor market trends, assess performance, and identify potential buying or selling opportunities.

Factors include earnings reports, economic data, geopolitical events, and changes in market sentiment.

By dividing the price difference by the previous price and multiplying by 100 to get the percentage.

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