HOW TO READ STOCK QUOTES???

CHAPTER 13
HOW TO READ QUOTES


HOW TO READ SHARE QUOTES IN NEWSPAPERS / INTERNET
Most of the people track their stock trades in the business sections of the newspaper or on the internet. The information provided on the stock table is the most current data available.
The stock table looks something like below






STEP1
Column 1 and 2 are the 52 WEEK High and Low – This is the highest and the lowest price paid for the single stock over the last 52 weeks i.e. one year.
STEP 2
Column 3 is the Companies name and the Type of stock – This column lists the name of the company. If there are no special letters or numbers following the name it is considered to be a common stock, but For example “pf” is return then it means the preferred stock, different symbols imply different types of stocks.
Step 3
Column 4 is the Ticker Symbol (SYM) – This is the unique alphabetic name which identifies the stock issued by the firm. If you are looking for the stocks quotes online you should search for the company by the Ticker Symbol.
STEP 4
Column 5 is the Dividend per Share – This indicated the annual dividend paid for each share, but if the space is blank then the company is not paying any dividends.
STEP5
Column 6 is the Dividend Yield –This is the percentage return on the dividend. Some companies do not pay dividends regularly; the Board of Directors decides how much to pay on quarterly basis calculated on annual dividend of the share divided by the price per share.
STEP 6
Column 7 is the Price/ Earnings Ratio –Mostly commonly known as P/E; this is calculated the current stocks prices by earnings per share from the last 4 quarters. The higher the P/E, the more investors are paying for the company’s potential.
STEP 7
Column 8 is the Trading Volume –The figures shows the total number of shares traded for the day, listed in hundreds. To get the actual number traded add”00” to the end of the numbers listed or multiply the number in the column by 100
STEP 8
Column 9 and 10 are the Days High and Low – This indicates the maximum and the minimum people have paid for the stock in a day
STEP 9
Column 11 is the Close – The close is the last trading price recorded at the end of the day, i.e. at market close.
STEP 10
Column is 12 is the Net Change – This is the dollar value change in the stock price then the last day’s closing price. If the + (positive) sign indicates rise and a - (negative) sign indicates a drop in the price.