1. What is Stock Price Increase?

Stock price increase represents the absolute dollar amount gain when a stock's current price exceeds its previous price. It's a fundamental measure of investment performance and capital appreciation.

2. How Does the Calculator Work?

The calculator uses the simple price increase formula:

Where:

• \( \text{New Price} \) — Current market price of the stock
• \( \text{Old Price} \) — Previous purchase or reference price

Explanation: This calculation shows the absolute dollar amount gained per share when the stock price rises.

3. Importance of Price Increase Calculation

Details: Calculating price increases helps investors track performance, determine profit/loss, make informed trading decisions, and assess investment strategy effectiveness.

4. Using the Calculator

Tips: Enter both prices in US dollars. Positive results indicate profit/gain, negative results indicate loss. Values must be non-negative numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between price increase and percentage gain?
A: Price increase shows absolute dollar gain, while percentage gain shows relative performance as a percentage of the original investment.

Q2: Should I consider transaction costs when calculating increase?
A: For net profit calculation, yes. Transaction costs reduce the actual gain. This calculator shows gross price increase only.

Q3: How often should I track stock price increases?
A: Frequency depends on your investment strategy. Long-term investors may track monthly/quarterly, while traders may monitor daily.

Q4: Does this work for fractional shares?
A: Yes, the calculator works for any share quantity as it calculates per-share increase. Multiply result by number of shares for total gain.

Q5: What if the result is negative?
A: A negative result indicates the stock price has decreased, representing a loss rather than a gain.