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Published byMervin Johnston Modified over 9 years ago
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How to Read the Stock Market Page
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Highest and lowest price a share of the stock has sold for in the past 52 weeks. Example ABC: High was 49 Example ABC: Low was 39 52 Week High/Low
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Div Annual Dividend per Share of Stock Based on the rate of the Last Quarterly Payout Annualized Data Example ABC: $1.30 per share Example: XYZ: $0 per share
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Yield Percentage Known as Dividend Yield A Measure of the Income Produced by the Stock Is the Amount of the Dividend divided by the Price of the Stock
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Yield Percentage Achieved by Dividing the Annual Dividend by the Day’s Closing Price Example: ABC 1.30/40 =.0325 or as a percentage: 3.25%
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P/E Ratio PRICE- EARNINGS RATIO –Ratio: latest closing price of the stock to the latest available annual earnings per share of the firm –Trailing P/E: is what is reported in the financial section of newspapers –Forward P/E: based on forecasting net year’s future expected earnings
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P/E Ratio Example: ABC – 20 P/E Ratio –Indicates that ABC is selling for 20 times the company’s earnings Example: XYZ – P/E Ratio is 62 –Indicates that XYZ is selling for 62 times the company’s earnings
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Sales 100s This represents the volume of transactions on the trading day Bought or Sold Presented in hundreds, simply multiple by 100 Example: ABC – 3314 Indicates that 331,400 shares traded
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High/Lows This represents the highest and lowest selling price of the stock for the day. Example: ABC – high of 40 low of 39
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Close This represents the price of the last stock sold for the day Example: ABC – closed at 40
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Net Change This lists the net change between the current price of the stock and the closing price on the previous trading day On many sites this is constantly updated and expressed as a percentage change. Example: BBA: Today’s Close: 76 Net Change: +1.3% Previous Day: 75
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Earnings per Share A means of valuing common stock. Part of a firm’s profit that is allocated to each outstanding share of common stock. Can be a good indicator of fiscal health
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Earnings per Share Many investors carefully watch this number In general, higher earnings per share means better dividend and overall stock performance.
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Earnings per Share Calculated by dividing the closing price on the day being consider by the P/E ratio. Example: Today’s CloseP/E Ratio 40.0020 Earnings per Share: ABC – $2.00
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Market Capitalization Often referred to as Market Cap Current price per share times the number of outstanding shares Small cap = $300 million to $2 Billion Mid cap = $2 to $5 Billion Large cap = over $5 billion There are some variations in how different investing companies/organizations classify companies.
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Sites for more info! www.investopedia.com www.moneycentral.msn.com www.finance.yahoo.com www.fool.com
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