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net change

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Financial Dictionary

Net Change

The difference between the closing price of a security on the day's trading and the previous day's closing price. Net change can be positive or negative and is quoted in terms of dollars. This is what the newspaper stock tables quote.

Investopedia Commentary

Net change is used in technical analysis to analyze stock prices. For example, if ABC stock closed at $10 yesterday and it closed at $10.25 today, then the net change is $.25. In the case where a stock price is automatically adjusted to reflect a dividend distribution or stock split, the net change will not be affected. Thus, a stock that trades at $60 one day and splits 2-for-1 the next day and closes at $30 will have a net change of zero.

Related Links

Stock Basics Tutorial
Reading Financial Tables Tutorial

See also: Close, Dividend, Ex-Dividend, Open, Quote, Security, Stock Split, Technical Analysis

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Financial Dictionary

net change

The points or dollars by which the closing price of a security or a security average has changed from the closing price on the last previous day it traded. For example, a net change of -.50 indicates a 50¢-per-share decline from the last previous closing price to the present closing price. Also called change, price change.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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