What is a Price Change?
How Does a Price Change Work?
For example, let's say Company XYZ shares opened at $25 this morning and closed at $24.
The price change is -$1, or -$1/$25 = -4%.
Why Does a Price Change Matter?
Price changes are a core component of financial analysis, and predicting price changes can be as, if not more, important than an actual price change.
It is important to remember, however, that percent-based price changes are useful only in the context of the number of dollars involved.
A 75% change in the price of a box of cereal, for example, may only involve a few dollars while a 75% change in the price of Berkshire Hathaway may involve thousands of dollars.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
As the stock market plunged in 2008 (for the second time in less than a decade), many people concluded that the world of...Read More →