The conversation between human and AI assistant.
VWAP (volume weighted average price) = Cumulative (Volume x Price) / Cumulative (Volume). Should price be "actual close" or "adjusted close"? Which one is better and why?
What are some examples of when "adjusted close" would be more appropriate?
One example would be if a company has already announced a dividend, and the ex-dividend date has passed. In this case, the stock price would be adjusted downwards, so it would make more sense to use "adjusted close" for VWAP in order to get a more accurate representation of the stock's average price during a given time period.