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How to Read the Stock Market Page Highest and lowest price a share of the stock has sold for in the past 52 weeks. Example ABC: High was 49 Example ABC:

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Presentation on theme: "How to Read the Stock Market Page Highest and lowest price a share of the stock has sold for in the past 52 weeks. Example ABC: High was 49 Example ABC:"— Presentation transcript:

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2 How to Read the Stock Market Page

3 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/Low

4 Stock Varies by Newspaper Either company abbreviation or ticker symbol In A-Z order

5 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

6 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

7 Yield Percentage Achieved by Dividing the Annual Dividend by the Days Closing Price Example: ABC 1.30/40 =.0325 or as a percentage: 3.25%

8 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 years future expected earnings

9 P/E Ratio Example: ABC – 20 P/E Ratio –Indicates that ABC is selling for 20 times the companys earnings Example: XYZ – P/E Ratio is 62 –Indicates that XYZ is selling for 62 times the companys earnings

10 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

11 High/Lows This represents the highest and lowest selling price of the stock for the day. Example: ABC – high of 40 low of 39

12 Close This represents the price of the last stock sold for the day Example: ABC – closed at 40

13 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: Todays Close: 76 Net Change: + 1 Previous Day: 75

14 Earnings per Share A means of valuing common stock. Part of a firms profit that is allocated to each outstanding share of common stock. Can be a good indicator of fiscal health

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

16 Earnings per Share Calculated by dividing the closing price on the day being consider by the P/E ratio. Example: Todays CloseP/E Ratio Earnings per Share: ABC – $2.00


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