how to read the stock market page highest and lowest price a share of the stock has sold for in the...
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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 Week High/LowTRANSCRIPT
How to Read the Stock Market
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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/Low52 Week High/Low
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
Yield PercentageYield 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
Yield PercentageYield 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%
P/E RatioP/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
P/E RatioP/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
Sales 100sSales 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
High/LowsHigh/Lows
This represents the highest andlowest selling price of the stock
for the day. Example: ABC – high of 40
low of 39
CloseClose
This represents the price of the last stock sold for the day
Example: ABC – closed at 40
Net ChangeNet 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
Earnings per ShareEarnings 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
Earnings per ShareEarnings per Share
Many investors carefully watch this number In general, higher earnings per share
means better dividend and overall stock performance.
Earnings per ShareEarnings per Share
Calculated by dividing the closing price on the day being consider by the P/E ratio.
Example: Today’s Close P/E Ratio 40.00 20
Earnings per Share:ABC – $2.00
Market CapitalizationMarket 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.
Sites for more info!Sites for more info!
www.investopedia.com
www.moneycentral.msn.com
www.finance.yahoo.com
www.fool.com