The adjusted closing price is the closing price of a stock after adjusting for corporate actions. Corporate actions can include stock splits, dividends, and rights offerings. The adjusted closing price is used when calculating various measures such as return on investment (ROI) and earnings per share (EPS).

#### How are adjusted purchases calculated?

The adjusted purchase calculation is used to account for any corporate actions that have taken place since the original purchase, such as stock splits or dividends. This ensures that the investments are valued correctly and allows for accurate comparisons between different investments.

To calculate the adjusted purchase, the following steps are typically followed:

1. Determine the original purchase price per share.

2. Determine the number of shares currently owned.

3. Adjust the purchase price per share for any corporate actions that have taken place since the original purchase. This may involve multiplying the original purchase price by a split ratio, or dividing it by the dividend payout ratio.

4. Multiply the adjusted purchase price per share by the number of shares owned to calculate the total value of the investment. What is opening and closing price in stock market? The opening price is the price of a security at the beginning of a trading day, while the closing price is the price of a security at the end of a trading day. The opening and closing prices are important because they represent the highest and lowest prices reached during the trading day, and can give investors an idea of how the security performed over the course of the day. How do you calculate return on stock price? There are a few different ways to calculate return on stock price, but the most common method is to take the current stock price and divide it by the original stock price. For example, if a stock was originally bought for \$100 and it is now worth \$110, the return on stock price would be 10%.

Another way to calculate return on stock price is to take the difference in stock price and divide it by the original stock price. So, using the same example from above, the return on stock price would be calculated as follows:

(110-100)/100 = 10%

Finally, some people also like to include dividends when calculating return on stock price. Dividends are payments made to shareholders by a company and they are typically paid out quarterly. If a stock was bought for \$100 and it is now worth \$110 and the company has also paid out \$5 in dividends, the return on stock price would be calculated as follows:

(110+5-100)/100 = 15%

As you can see, there are a few different ways to calculate return on stock price and the method you use will depend on your personal preferences. How do you calculate adjusted stock price after dividend? To calculate the adjusted stock price after a dividend, you need to take the following steps:

1. Determine the dividend per share amount.

2. Subtract the dividend per share amount from the current stock price.

3. Divide the result by the number of shares outstanding.

4. Multiply the result by the number of shares you own.

5. Add the dividend per share amount to the result.

For example, let's say that you own 100 shares of XYZ Corporation stock, and the current stock price is \$10 per share. The company has just declared a \$0.50 per share dividend. To calculate your adjusted stock price, you would take the following steps:

1. Determine the dividend per share amount: \$0.50

2. Subtract the dividend per share amount from the current stock price: \$10.00 - \$0.50 = \$9.50

3. Divide the result by the number of shares outstanding: \$9.50 / 100 = \$0.095

4. Multiply the result by the number of shares you own: \$0.095 x 100 = \$9.50

5. Add the dividend per share amount to the result: \$9.50 + \$0.50 = \$10.00

Therefore, the adjusted stock price after the dividend is \$10.00 per share.

##### Should you use closing price or adjusted price when calculating returns?

There is no one-size-fits-all answer to this question, as the appropriate metric to use will depend on the specific circumstances and goals of the individual or organization in question. However, as a general rule, adjusted price is generally a more accurate and informative metric than closing price when calculating returns.

This is because adjusted price takes into account things like stock splits and dividends, which can have a significant impact on an investor's return. Closing price, on the other hand, does not adjust for these factors, and as such can provide a less accurate picture of an investment's true return.