How Do You Calculate Real Stock Prices?
Real stock prices are not the same as the last traded stock price. Real stock prices are adjustments to closing stock prices. The adjustments are used in a variety of ways, including dividends, the range of prices and the closing price of the day. In addition, there are technical definitions of real stock price used to adjust closing prices for one-time events. Use the technique most appropriate to your investing needs. Know that there is often a large discrepancy between stock prices and the underlying value of a stock that real stock prices attempt to uncover. Understand that stock prices are collected by their open, high, low and closing prices. Know that these values are together called the range. Use the closing price as the most important of all prices as this is the price traders pay to hold a stock overnight. Know that these prices, combined with volume calculations, are used in many technical indicators. Real stock prices are either the difference between the private and publi
