The price of a stock increases by 20% and then decreases by 25%. If the original price was $100, what is the final price?

Sat, 02 May 2026 09:02:18 +0000

**Why Stock Prices Can Rise 20% and Then Fall 25%—And What It Really Means** Have you ever watched a stock jump 20% only to drop back a quarter of that gain? If the original price was $100, where does the share end up? This exact scenario plays out more frequently than many realize—prompting curiosity not just among investors, but across US-based audiences tracking market moves. It’s a pattern that combines psychological impact with real market mechanics. Understanding how this sequence works reveals both the volatility and the underlying logic behind stock movement. **Why It’s Gaining Traction in the US Market** In recent years, U.S. investors have become increasingly vocal about volatile price swings like the 20% rise followed by a 25% decline. This pattern reflects broader economic signals—market sentiment shifts, earnings reports, or macro trends—amplified by news cycles and digital financial platforms. With social media and financial apps shaping real-time trading behavior, interactions around these swings draw attention as people seek clarity amid chaos. The phenomenon is no longer just jargon—it’s part of everyday financial discourse.