Explanation of Value Change
Value change is an adjustment made to a stock’s price to reflect the number of outstanding stock parcels issued and currently held by investors. A value change allows the group of stocks to be equally
BREAKING DOWN Value Difference
A value change adjustment is intended to equally weigh the stocks that are included in a group. Value change can be hand-me-down in a variety of settings and describes a type of calculation used to compare and evaluate investment instruments by taking the number of portions held by investors into consideration.
Example of Value Change
For example, if XYZ company currently has 1,000,000 shares extraordinary 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 multitude of shares outstanding is doubling, which is a significant change.