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

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.