What is Net Change?
Net change refers to the difference in closing price of a stock, bond, mutual fund, ETF or other traded financial instrument from one period to the next.
How Does Net Change Work?
In fundamental analysis, net change is used to analyze stock prices and can be either positive or negative.
Let's assume that the stock of Company XYZ closed at $5 per share yesterday. Today, it closed at $5.75. The net change is $0.75. Often the net change includes a + or - sign to make the direction of the change clear.
Why Does Net Change Matter?
Net change is a measure of performance and most commonly measured on a daily basis, particularly for investors who must settle their accounts after every trading day. Net change can also be calculated on a monthly, quarterly or annual basis.
