Net Change


DEFINITION of '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.


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.

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