• Shahn Khan

Why understanding Stock Quotes are important?

Well, read stock quotes help to make educated and informed decisions regarding investments. You need data about a particular stock to make a decision and execute a trade. At the very initial you need the name of the stock, its ticker symbol, agreed-upon price, and a number of shares to buy or sell.

All the stock exchanges

Some of the following information, often in an abbreviated format will help you read the Stock Quotes

Open: This is the stock's opening price. This and all prices are quoted to hundredths of a cent.

52-week high and low (or range): These two numbers record the highest and lowest price at which the stock traded during the previous 52-week period but does not include the previous trading day. The numbers may be adjusted for stock payouts or large dividends.

Stock symbol (SYM): The stock name, often abbreviated, and the stock ticker symbol. You can find the stock symbol for a given company on many financial websites by simply typing the name of the company; the site will return its symbol.

The dividend (DIV): A dividend is a portion of profits paid to a company's shareholders. Unless noted in a footnote, this reflects the annual price per share based on the last regular disbursement.

Yield percentage (Yld%): The yield percentage expresses the dividends and any other disbursements paid to stockholders as a percentage of the stock’s price.

Earnings per share (EPS): This is the company's net earnings divided by its total number of shares. A higher number indicates greater profitability.

Price-to-earnings ratio (P/E): The price-to-earnings ratio is the price of the stock divided by its EPS. Ths number helps investors compare stock prices more directly to other companies.

Sales volume (Sales 100s): The total amount of stock sold that day expressed in hundreds. In other words, sales volume is expressed with two zeros missing. For example, if the number reported is 1,959, that means sales volume for that stock was 195,900 for the day.

High: This is the highest price paid for the stock during the previous day.

Low: This is the lowest price paid for the stock during the previous day.

Last (or close): The last price the stock traded on that day. It does not mean that is the price at which the stock will open the next day.

Change: The difference between the last trade and the previous day's price.

Year-to-date percentage change (YTD% CHG): This number is the stock price percentage change for the calendar year. The percentage is adjusted for stock splits and dividends of more than 10%.

Net change (CHG): The net change is calculated from the previous day’s close, so you are comparing what the stock closed at today to what it closed at yesterday.

You may also notice some footnotes throughout the listings. These point out any number of extraordinary circumstances, such as new highs or lows, the first day of trading, unusual dividends, and so forth.

2 views0 comments

Recent Posts

See All