Understanding Stocks Definitions Dividend: part of a corporations earnings (profits) that are paid back to the stockholder. Price/Equity ratio: price to.

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Presentation transcript:

Understanding Stocks Definitions Dividend: part of a corporations earnings (profits) that are paid back to the stockholder. Price/Equity ratio: price to earnings ratio. The relationship between a company’s earnings and stock price. Stock: a type of security that signifies ownership in a corporation and signifies a claim to its earnings and assets

Definitions continued Volume: the number of shares traded in a company’s stock. Unusual activity, either higher or lower than average, is usually the result of external events.

Opening Price is the first price paid after trading starts, usually when the stock exchange "opens its trading doors" in the morning. Sometimes, opening price is higher or lower than the closing price of the previous day (orders are placed overnight and can affect the demand and thus, the opening price). Ask price is the price you will pay to buy a stock. Bid price is the price you will get if you sell your stock.

Prev Close is the closing price for the trading day prior to the last trade reported. Vol is the volume of trading (number of shares). Avg Vol is the Average Daily Volume, which is the monthly average of the cumulative trading volume during the last 3 months divided by 22 days.

Div Date is the Dividend Pay Date, which is the date on which the dividend was last paid, or the date on which the next one will be paid. Div/Shr is the Dividend Per Share--the annual dividend per share of stock as reported by the company. Yield is the annual dividend per share divided by the previous closing stock price as a percentage (multiplied by 100).

EPS is Earnings Per Share stated for the most recent 12 months. EPS is calculated by dividing earnings by the average number of shares of common stock outstanding during the period.