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.

RELATED TERMS
  1. Outstanding Shares

    Outstanding shares refer to a company's stock currently held ...
  2. Price Change

    A price change indicates a new valuation has been made on the ...
  3. Capital Stock

    Capital stock is the number of common and preferred shares that ...
  4. Market Value Of Equity

    Market value of equity is the total dollar value of a company's ...
  5. Asset Value Per Share

    Asset value per share is the total value of an investment or ...
  6. Average Outstanding Balance

    An average outstanding balance is the unpaid, interest-bearing ...
Related Articles
  1. Investing

    The Basics Of Outstanding Shares And The Float

    We go over different types of shares and what investors need to know about them.
  2. Investing

    What Are Corporate Actions?

    Be a savvy investor - learn how corporate actions affect you as a shareholder.
  3. Investing

    Investment Valuation Ratios

    Learn about per share data, price/book value ratio, price/cash flow ratio, price/earnings ratio, price/sales ratio, dividend yield and the enterprise multiple.
  4. Investing

    Market value versus book value

    Understanding book value and market value is helpful in determining a stock's valuation and how the market views a company's growth prospects in the future.
  5. Investing

    The Difference Between Enterprise Value and Equity Value

    Enterprise value calculates a business’s current value, while equity value offers a snapshot of that business’s current and potential future value.
  6. Investing

    How to pick winning penny stocks

    When choosing penny stocks, wise investors note several key factors that affect the way these stocks trade – and the inherent risks that can follow.
  7. Investing

    Value or Growth Stocks: Which Are Better?

    The answer to the age-old debate about growth versus value stocks depends on a number of factors.
RELATED FAQS
  1. Weighted Average Shares Vs. Outstanding Shares

    What's the difference between weighted average shares outstanding and basic weighted average shares? Read Answer >>
  2. Shares outstanding versus floating stock: what's the difference?

    Shares outstanding and floating stock are different measures of the shares of a particular stock. Learn the difference and ... Read Answer >>
  3. What is the difference between book value per common share and NAV (net asset value)?

    Understand the difference between book value per common share and net asset value, and learn how these evaluations are used ... Read Answer >>
  4. How is the value of the S&P 500 calculated?

    The S&P 500 is a U.S. market index that gives investors an idea of the overall movement in the U.S. equity market. The value ... Read Answer >>
  5. In what situations does it benefit a company to buy back outstanding shares?

    Learn about the reasons a company may choose to buy back its outstanding shares, such as reducing the cost of capital and ... Read Answer >>
  6. The share price and company's secondary offering

    When a company increases the number of shares issued through a secondary offering, it generally has a negative effect on ... Read Answer >>
Hot Definitions
  1. Current Assets

    Current assets is a balance sheet account that represents the value of all assets that can reasonably expected to be converted ...
  2. Volatility

    Volatility measures how much the price of a security, derivative, or index fluctuates.
  3. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
  4. Cost of Debt

    Cost of debt is the effective rate that a company pays on its current debt as part of its capital structure.
  5. Depreciation

    Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account ...
  6. Ratio Analysis

    A ratio analysis is a quantitative analysis of information contained in a company’s financial statements.
Trading Center