If Wall Street reports a stock being down 10% from say, $100, then the current price should be $90. It would be a mistake to report percentage from the standpoint of the current price, right? i.e. $90 would have to increase 11.1% to become $100. We should never say that a stock is down 11.1% from $100 if the current price is $90, right?
To me, this is interesting because if the news says stocks are down 10% from yesterday, and then tomorrow they report that stocks are up 10%, you might think the market had gained back what it lost, but that would be wrong because the second day's 10% is less than the first day's.
Sorry maybe this would be better posted in r/basicmath?
Submitted December 11, 2018 at 09:28PM by baodad https://ift.tt/2Egb4EU
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