What is net change?

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Certainly! In simple terms, net change in stocks refers to the overall difference in the stock price between two specific points in time. It tells you whether the stock price has increased or decreased, and by how much.

Let's say you bought shares of a company at $50 each. After a week, the stock price rose to $55 per share. In this case, the net change would be $55 minus $50, which equals $5. So, the net change is $5, indicating that the stock price increased by $5 since you purchased it.

Similarly, if the stock price had fallen to $45 per share, the net change would be $45 minus $50, which equals -$5. This means the stock price decreased by $5 since you bought it.

Net change provides a quick way to understand whether the stock has gained or lost value, and how much, helping investors track the performance of their investments.

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