Understanding CHG Meaning In Stock Market: The word “Change” is used in a broad spectrum. It usually means the difference between two points in time. Of course, this meaning applies to anything and everything.
The change we’re referring to is related to the stock market. A change in finance refers to the difference in price between two points of time, which could either be minutes or years.
So what is CHG meaning in stock market and how does it differ from Change? Read ahead to find out!
What is the Meaning of CHG in stock market?
CHG simply refers to Change in the movements. It could be stocks, options or futures, change basically means the price difference between two points of time of security. Based on the type of security you’re looking at, Change could mean different things.
- For Stocks and Bonds, change is the difference between today’s price and yesterday’s closing price.
- For Options and Futures Contracts, it is the difference between the current price and yesterday’s settlement price.
- For an index like NIFTY 50 and SENSEX, change is the difference between the present value of the index and the last closing price the previous day.
Understanding Change or CHG in Stock Market
Change is a simple word to conceal a much more complex term that we see often in finance which is – volatility. The change could mean either growth or fall in prices, earnings, revenues, growth, etc.
For example – A change in earnings could either mean earnings growth or shrinkage.
It basically describes the difference in values over a period of time. Positive change means better performance and growth, and a negative change implies a slump in growth, profits, and revenue.
Calculating The Value Of Change
Finance thrives off change. This is especially true for investors and options traders, who profit from changes in prices, demand, and investor sentiments. Moving forward knowing the meaning of CHG meaning in stock market, we’ll see the calculation of the value change.
Investors buy shares at one or two different price points and after some time, they estimate the price is bound to go up and they decide to sell for a profit. It could either be a 20% return or a 200% return – It varies among investors and their specific goals.
Generally, change is calculated by subtracting the difference between the previous value and the present value. Let’s simplify it through an example –
Company Alpha is trading at ₹100 today and it was trading at ₹50 the previous quarter. The difference between the two price points is the present price of ₹100 minus the previous price of ₹50 which is equal to ₹50.
This change is represented through percentages rather than the actual prices. In this example, the share price doubled from last quarter so it is reported as growing 100% since last quarter.
Change in the stock market varies by both external and internal factors such as government regulations, industry change, earnings, and economic conditions. Hence we understood CHG full form in stock market is Change only.
We hope this blog gave you a better idea of CHG meaning in share market and what is CHG in stock market. If you’re interested in more such topics, then check out the Courses section and enroll for your favourite courses today. Happy Investing!
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