If you are serious about trading stock you have to know how to read stock quotes. It is one of the basics that you need to have a good grasp on in order to make money in stocks trading. Stock quotes are used in both the major and penny stocks, there’s no difference.
Reading stock quotes do not require you to be a savvy, it’s a very simple thing to learn and do. The only thing you have to know is the definition of the headings, once you know them the sky is your limit in reading stock quotes.
Sample of stock quotes
As you can see from this table, each column has its name, each one of them means something different. I will give you a detailed explanation of them which should gives you a clear understanding of this topic at hand.
52 Weeks High and Low (52W)– Represent the highest and lowest prices the stock had sold for in the past year. It does not have anything to do with the current year. This data could be helpful to you to have any idea as of whether the stock is under valued or over valued by comparing its current price to those of the past 52 weeks.
Stock– In the third column is where you should find the name of the company. In some cases you may find some special letters after the name of the company. If those letters are found then this stock is not a common one, but if there isn’t any letters after the name it’s known as a common stock.
Ticker– In the fourth column is where the name of the stock is found. This name is what is used in the market to identify the stock. Some traders refer to it as the stock’s symbol, it is used to look for information on a stock, such as the price.
Dividend/Share– indicates the amount of dividends that the company is paying per share annually. Often times, you will find a blank space in this column. Companies that do not have any number in this column are not paying their dividends.
Dividend Yield– Represents the percentage of return on the dividends. You might have to calculate this number yourself sometimes. How is it calculated? It is very fair to do so, you have to take the annual dividends per share divides it by the price per share. It should give you the dividend yield.
Price Earnings Ratio– It is the current share price of the stock divided by its earning per share. You can find more details by clicking on it which should take you to the education section.
Trade volume– Is the number of shares trade in one day. This value is listed in hundred, you have to add two zeros, “00” at the end of the number given in order to have the exact number traded for the day.
High and Low for the day– is the highest and lowest prices that the stock has traded for during the day. That’s the price everyone is watching throughout the day to know when to buy or sell shares.
Close– Is the price of a stock when the market is closed. Keep in mind this price may still change after hours which you won’t be able to see. If you set up a transaction to be executed in the following day there’s a great possibility that you may not buy it for the recorded price.
Net Change– is what defines whether a stock is up or down for the day. It is a change of the stock’s price or value from the previous day.
These are all the contents of the stock quotes, it is crucial that you read them before making any transaction. You goal is to make money trading, take your time, do your research, and then trade.