For example if a stock costs $1.00 then decreases to $0.50 the next day and the day after increases to $1.25, how would you calculate the rise and fall in percentages?How do you calculate the percentage rise and fall of stocks?
If you are talking about daily changes: First day a decrease of 50% and second day an increase of (125-50)/50 = (250-100)/100 or 150%.How do you calculate the percentage rise and fall of stocks?
depends.
the best way to do it is to take the difference in price from new to old, and divide it by initial value.
for example.
it was initially 1.00, then it dropped to 0.50
0.50 - 1.00 = -0.50
-0.50 / 1.00 = -1/2 = -50%
from the first day to the second day, it dropped 50%
then the next day it went up to 1.25
1.25 - 0.50 = 0.75
0.75 / 0.50 = 1.5 = 150%
from the second day to the third day, it rose 150%.
however...
initially it was 1.00 then after two days it went up to 1.25.
1.25 - 1.00 = 0.25
0.25 / 1.00 = 1/4 = 25%
so from day 1 to day 3 it went up only 25%
this is why the percentage of rise and fall of stocks is dependent on the initial value.
but, always use this formula, and you should be fine.
(NEW PRICE - OLD PRICE) / OLD PRICE = % CHANGE SINCE OLD PRICE.How do you calculate the percentage rise and fall of stocks?
% change from a to b = 100 x (b - a)/a
Accordingly, $1.00 to $0.50 = -50% and $0.50 to $1.25 = 150%
Overall. $1.00 to $1.25 = 25%
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment