# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Net Change

Written By
Paul Tracy
Updated January 16, 2021

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.

Ask an Expert about Net Change
At InvestingAnswers, all of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Net Change.
Be the first to ask a question

If you have a question about Net Change, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers.

If you have a question about Net Change, then please ask Paul.

Ask a question Read more from Paul

Read this next

Paul Tracy - profile
Ask an Expert about Net Change

By submitting this form you agree with our Privacy Policy

Share
close
Don't Know a Financial Term?
Search our library of 4,000+ terms