1. What is Percentage Change?

The percentage change measures how much a value has increased or decreased relative to its original amount. In stock market terms, it shows the relative change in a stock's price over time.

2. How Does the Calculator Work?

The calculator uses the percentage change formula:

Where:

• \( New \) — Current stock price
• \( Old \) — Original stock price

Explanation: The formula calculates the difference between new and old values as a percentage of the old value.

3. Importance of Percentage Change

Details: Percentage change is crucial for investors to evaluate stock performance, compare different investments, and make informed trading decisions.

4. Using the Calculator

Tips: Enter both old and new prices in the same currency. The old price must be greater than zero for valid calculation.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative percentage mean?
A: A negative percentage indicates the stock price has decreased from its original value.

Q2: How is this different from percentage points?
A: Percentage change is relative to the original value, while percentage points measure absolute difference between percentages.

Q3: Should I use closing prices for calculation?
A: For most accurate comparisons, use the same type of prices (closing, opening, etc.) for both values.

Q4: Can I use this for other investments?
A: Yes, this formula works for any asset where you want to measure price change over time.

Q5: What's considered a significant change?
A: This varies by stock and market conditions, but typically changes >5% are considered noteworthy.