How to Read Stock Market Page by wxj19962


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									How to Read the
Stock Market Page
52 Week High/Low

 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

 Varies by Newspaper

 Either company abbreviation
  or ticker symbol

 In A-Z order
 Annual Dividend per Share of
 Based on the rate of the Last
  Quarterly Payout
 Annualized Data
 Example ABC: $1.30 per share
 Example: XYZ: $0 per share
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
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%
  P/E 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 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 100s
 This represents the volume of transactions
  on the trading day

 Bought or Sold

 Presented in hundreds, simply multiple by
     Example: ABC – 3314
     Indicates that 331,400 shares traded

 This represents the highest and
  lowest selling price of the stock
   for the day.

    Example: ABC – high of 40
                     low of 39

 This represents the price of the last stock
  sold for the day

    Example: ABC – closed at 40
Net Change

 This lists the net change between
  the closing price for the stock for
  the day and the closing price on the
  previous trading day

    Example: BBA: Today’s Close: 76
                    Net Change: + 1
                    Previous Day: 75
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
Earnings per Share

 Many investors carefully watch
  this number
 In general, higher earnings per share
  means better dividend and overall
  stock performance.
 Earnings 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

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