Net Change
What it is:
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 it works (Example):
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 it Matters:
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.
