Chapter 1: The Stock Market 1.2 Stock Market Data

1.2 Stock Market Data What is a stock market??? A general term for an institution through which stocks are bought and sold EX: New York Stock Exchange (NYSE) EX: National Association of Securities Dealers Automated Quotation System (NASDAQ) Stock market transactions are called trades

Categories used in Stock Market International Charts Last – price per share of the last trade that was made for a particular stock Close (closing price) – the last price at which a stock was traded during a regular’s day trading session. Most stock markets daily session is 9am-4pm EST High – the highest price at which one share of a stock was traded on a given day Low – the lowest price at which one share of stock was traded on a given day

Categories used in Stock Market International Charts Volume – the number of shares that was traded in a given time period Sometimes listed as sales in 100s. This represents the number of groups of 100 shares that were traded on a given day 52-week high- the highest price at which one share was traded over the last year 52-week low – the lowest price at which one share was traded over the last year Chg or net change – the change between the previous day’s closing price and the current day’s closing price After hours trading – some trades are made after the market closes

Real world example… http://finance.yahoo.com/ Let’s find a corporation and take a look at some of its data…

Example 1 Examine the data for XYZ Corporation published at the close of two trading days. These categories are used when analyzing data about stock.

Example 1 Continued What was the difference between the high and the low prices on May 5th? May 12th?

Example 2 On May 12, what was the actual volume of XYZ shares posted? Write the volume in thousands.

Example 3 On May 5, what was the actual volume of XYZ shares posted?

Example 4 At what price did XYZ Corporation close on May 4? May 11? (remember: positive net change means an increase in the closing price from the previous day’s close)

Example 5 Use the May 4 closing price from Ex 3 and the May 5 opening price to find the difference in prices as a percent increase. Round to the nearest hundredth percent.

Example 6 Use May 11 closing price from Ex 4 and the May 12 opening price to represent the difference as a percent decrease. Round to the nearest hundredth percent.

Example 7 On May 6, the XYZ Corporation announced a decrease in earnings. This news caused the price of their stock to drop. It closed at $44.37. Express the net change from May 5 to May 6 as a percent.

Example 8 On May 13, the XYZ Corporation announced another decrease in earnings. The price of their stock dropped to close at $45.72. Express the net change from May 12 to May 13 as a percent, to the nearest tenth.

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