Price Change

AAA

DEFINITION of 'Price Change'

The difference in the cost of an asset or security from one period to another. While it can be computed for any length of time, the most commonly cited price change in the financial media is the "daily price change", which is the change in the price of a stock or security from the previous trading day's close to the current day's close. Price change over a period of time such as year-to-date or past 12 months are also commonly used time periods, and is generally computed as a percentage change.

INVESTOPEDIA EXPLAINS 'Price Change'

Percentage price change is generally the norm for computing asset performance. For shorter intra day periods, absolute price change may be used by momentum and algorithmic traders as the basis for trading and arbitrage strategies.


Price change forms one of the two elements that comprise the total returns from an investment over a period of time, the other being dividends or distributions obtained from the investment.

RELATED TERMS
  1. Closing Range

    The band of prices that a security trades at in a specified period, ...
  2. Theory Of Price

    An economic theory that contends that the price for any specific ...
  3. Price Rate Of Change - ROC

    A technical indicator that measures the percentage change between ...
  4. Market Price

    The current price at which an asset or service can be bought ...
  5. Closing Price

    The final price at which a security is traded on a given trading ...
  6. Change

    1. For an options or futures contract, the difference between ...
Related Articles
  1. Options & Futures

    Retracement Or Reversal: Know The Difference

    Learn to distinguish between a temporary price change and a long-term trend.
  2. Options & Futures

    Profit On Any Price Change With Long Straddles

    In this strategy, traders cash in when the underlying security rises - and when it falls.
  3. Investing

    How can my stock's price change after hours, and what effect does this have on investors? Can I sell ...

    Most investors know that the major stock exchanges have standard trading hours - set periods of time each day when trading occurs through the exchange. Most major exchanges trade from 9:30am ...
  4. Investing Basics

    What is common stock and preferred stock?

    Learn about the differences between common and preferred shares. Explore situations where preferred shares have more favorable rights of ownership.
  5. Investing Basics

    Are over-the-counter stocks different from other stocks?

    Explore the difference between stocks traded over-the-counter and those listed on the NYSE or Nasdaq. Learn how price affects prospects for a stock.
  6. Investing Basics

    What assets are most risky and what assets are safest?

    Learn about the safest and riskiest assets to invest in. Explore savings accounts, T-bills, certificates of deposit, equities and derivatives.
  7. Investing Basics

    How do regulators ensure that markets are conducted at arm's length?

    Learn about arm's length transactions and how the Investment Advisers Act allows stockbrokers to sell securities based on suitability reviews.
  8. Investing Basics

    Are there any pure arm's-length markets?

    Learn about arm's length markets and transactions. Explore situations when different market participants may not be at arm's length.
  9. Options & Futures

    What is the difference between a short position and a short sale?

    Learn how short selling and short positioning are different, specifically in regards to the nature of the commodity being bought and sold.
  10. Fundamental Analysis

    Why would I need to know how many outstanding shares the shareholders have?

    Find out why shareholders should know how many outstanding shares have been issued by a corporation, and learn what happens when more shares are issued.

You May Also Like

Hot Definitions
  1. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  2. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  3. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  4. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  5. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  6. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
Trading Center