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Interesting math question: When we now start at a negative price tomorrow, what does a percentage change mean? Today, we have got losses >100%, unusual but obvi
by patall 7y ago
Interesting math question: When we now start at a negative price tomorrow, what does a percentage change mean? Today, we have got losses >100%, unusual but obviously possible. But if price changes tomorrow from say $-10 to $10, is that again -200%? Does a change from $-10 to -$20 mean +100%?
(I obviously know percentage changes are not made for this)
- gberger 7y agoI guess we'll find out tomorrow
- symplee 7y agoFollow up question: If it had ended at zero dollars, then the next day jumps to $5, what's the percentage change?
- marcosdumay 7y agoFollow up answer, it's never zero dollars.
- marcosdumay 7y agoHum... We can know this today with the power of Math! But seriously, changing to -$10 to -$20 is a +100% change. It's multiplication, this is how it works. From -$10 to $10 would be a -200% change. Obviously, only the mainstream news reports finance numbers as a percentage of change. Anybody else is only concerned about ROI.
- patall 7y agoWell, NYSE stops at certain drop intervals, so percentage does also occur professionally: https://en.wikipedia.org/wiki/Trading_curb https://en.wikipedia.org/wiki/Trading_curb
- jVinc 7y agoIf I take 10$ to take some asset, and then later sell it for 20$ my return is 30$ and my investment was -10$, so my ROI comes out as -300% which betrays what's going on. So even with ROI, negative numbers throws a wrench in the machinerys typical assumptions.