What is ‘Value Change’
An adjustment made to a stock’s price to reflect the number of outstanding stock shares, or shares of stock that have been issued and are 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.
Explaining ‘Value Change’
A value change adjustment is intended to equally weight 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 .
Further Reading
- Changes in the value-relevance of earnings and book values over the past forty years – www.sciencedirect.com [PDF]
- Equity ownership concentration and firm value: Evidence from private equity financings – www.sciencedirect.com [PDF]
- The effects of management buyouts on operating performance and value – www.sciencedirect.com [PDF]
- Fair value accounting, financial economics and the transformation of reliability – www.tandfonline.com [PDF]
- Evidence on the capitalized value of merger activity for acquiring firms – www.sciencedirect.com [PDF]
- Agency costs of free cash flow, corporate finance, and takeovers – www.jstor.org [PDF]
- Extreme value theory and extremely large electricity price changes – www.sciencedirect.com [PDF]
- Bootstrap Finance: the art of start-ups. – www.ncbi.nlm.nih.gov [PDF]
- The effect of firms' financial disclosure strategies on stock prices – search.proquest.com [PDF]
- An empirical comparison of published replication research in accounting, economics, finance, management, and marketing – www.sciencedirect.com [PDF]
