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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.

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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."— 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 39 52 Week High/Low

4 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

5 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

6 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%

7 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 year’s future expected earnings

8 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

9 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

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

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

12 Net 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

13 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

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

15 Earnings per Share  Calculated by dividing the closing price on the day being consider by the P/E ratio. Example: Today’s CloseP/E Ratio 40.0020 Earnings per Share: ABC – $2.00

16 Market 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.

17 Sites for more info! www.investopedia.com www.moneycentral.msn.com www.finance.yahoo.com www.fool.com


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