DEFINITION of 'Value Change'

Value change is an adjustment made to a stock's price to reflect the number of outstanding stock shares issued and currently held by investors. A value change allows the group of stocks to be equally weighted and, therefore, more easily evaluated. Since the number of shares held by investors changes daily, this number can be updated daily to reflect the changes.

BREAKING DOWN 'Value Change'

A value change adjustment is intended to equally weigh the stocks that are included in a group. Value change can be used in a variety of settings and describes a type of calculation used to compare and evaluate investment instruments by taking the number of shares held by investors into consideration.

Example of Value Change

For example, if XYZ company currently has 1,000,000 shares outstanding in the public markets and decides to issue an additional 1,000,000 shares, the stock's price may undergo a value change since the number of shares outstanding is doubling, which is a significant change.

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