When trading is done for the day on a stock exchange, all stocks are priced at close. The price that is quoted at the end of the trading day is the price of the last lot of stock that was traded for the day. This is referred to as the stock's 澳洲幸运5官方开奖结果体彩网:closing price.

That closing price is the reference point used by investors to compare a stock's performance over a period of time.

It's worth noting that closing prices do not reflect 澳洲幸运5官方开奖结果体彩网:after-hours prices or any corporate actions that might alter the stock's price from time to time, although they act as useful markers for investors to assess changes in value over t﷽ꦫime.

Good or bad news related to a company, its industry, or the economy overall can affect the price of any stock during the day. Less often but equally important, any 澳洲幸运5官方开奖结果体彩网:distribution that is made🌟 by the company to shareholders will also affect the stock price.

These distributions may include cash dividends, stock dividends, or 澳洲幸运5官方开奖结果体彩网:stock splits.

Calculating Adjusted Closing Price

The 澳洲幸运5官方开奖结果体彩网:adjusted closing price is often used when examining 澳洲幸运5官方开奖结果体彩网:historical returns or performing a detail🐟ed analysis of historical return🙈s.

When distributions are made, the adjusted closing price calculations are simple. For 澳洲幸运5官方开奖结果体彩网:cash dividends, the value of t🃏he dividend is deducted from the last closing sale price of the stock.

For example, let's assume that the closing price for one share of XYZ Corp. is $20 on Thursday. After the close on Thursday, XYZ Corp. announces a dividend distribution of $1.50 per share. The adjusted closing price for the stock would then be $18.50 ($20-$1.50).

If XYZ Corp. announces a 2:1 stock dividend instead of a cash dividend, the adjusted closing price calculation will change. A 2:1 stock dividend means that for every share an investor owns, he 𓂃or she will receive two more shares. In this case, the adjusted closing price calculation will be $20*(1 / (2+1)). This will give you a price of $6.67, rounded to the nearest penny.

If XYZ Corp. announces a 2:1 stock split, investors will receive an extra share for every share they already own. This time the calculation will be $20*(1 / (1x2)), indicating an adjustedꦍ closing price of $10.

Other Actions

Cash or stock dividends and stock splits are the most common corporate actions that can 澳洲幸运5官方开奖结果体彩网:affect a stock's closing price. Other corporate actions, such as an announcement of a 澳洲幸运5官方开奖结果体彩网:rights offering, make determining the adjusted closing price more complicated. Company news can affect investor senཧtiment and move the stock's price, as well.

Histo𒁏rical price services provided by financial sites such as Investopedia and Yahoo! Financ🐈e can solve the problem by calculating adjusted closing prices for investors.