Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Unchanged

What it is:

In the stock world, unchanged means that the closing quote at the end of a trading day for a particular stock is the same as the closing price for the stock the day before.

How it works (Example):

For example, let's say that on Monday, Company XYZ closes at $45 a share. On Tuesday, many people trade Company XYZ — some trades are at $45.50, some are at $44, some are at $45.25, and some are at $45. The last trade of the day, however, is at $45, making it the closing price for Company XYZ on Tuesday. Because this price is the same as the closing price the day before, we say that Company XYZ is closing unchanged.

Why it Matters:

Unchanged implies that a stock price isn't showing much movement among investors, but as the example shows, this can be a dangerous assumption. A stock can trade at a variety of prices throughout the trading day, and its price can be quite volatile in that time. Additionally, the closing quote does not necessarily mean the end of all trading in a security for the day. It simply means the floor of the exchange is closed. After-hours markets remain open, as do other exchanges in other countries and time zones, which provides opportunity for the price to change.
 

Related Terms View All
  • Auction Market
    Though most of the trading is done via computer, auction markets can also be operated via...
  • Best Execution
    Let's assume you place an order to buy 100 shares of Company XYZ stock. The current quote...
  • Book-Entry Savings Bond
    Savings bonds are bonds issued by the U.S. government at face values ranging from $50 to...
  • Break-Even Point
    The basic idea behind break-even point is to calculate the point at which revenues begin...
  • Calendar Year
    If Company XYZ starts its fiscal year on January 1 and ends its fiscal year on December...