Saturday, October 07, 2006

Stock Quote Guide

This is one for the beginners.

When I was starting out I wish somebody could have showed me how to make sense of a stock quote. I’ve posted a screen capture of Google’s stock quote from Yahoo! Finance. I’ll break down and define everything right here.


I've defined all the data found in this typical stock quote.
Typical Stock Quote Chart



Google: The name of the company. If you had requested a quote for YHOO it would have brought up the stock quote for Yahoo!.

After Hours: This shows how the stock traded after the official closing of the markets. Markets officially close at 5 P.M. sharp every weekday except holidays. This price reflects activity after the closing bell.

Last Trade: Last price the stock was sold for during market hours.

Trade Time: The most recent day a stock was traded.

Change: Indicates the change in a stock’s price. When the market is open, this changes as the stocks price changes. After closing, this stays the same until the markets open again.

Prev Close: Stands for previous close. The price a stock last traded for after the most recent market close. (EX: A stock closes on Tuesday for $30 a share then Wednesday’s Previous Close would be $30.)

Open: The price of stock at the opening bell. (EX: A stock could settle at $50 a share on Thursday at closing and have an opening price of $51 if After Hours Trading pushed up the price of a stock.) This price would change the next time the markets opened.

Bid: Price a potential buyer is willing to pay for a stock at a specific time.
Ask: Asking price for a specific stock.

1y Target Est.: A stock’s estimated per share value.

Day’s Range: Price range a stock traded in during the current or most recent trading session. EX: A stock that opens at $10, rises to $25, and falls to $5 by the end of the session has a Day’s Range of $5 - $25.

52wk Range: Stands for 52 week or year range. The highest and lowest point a stock has traded at for the past year. EX: A stock opens at $50 in December, falls to $1 in July, and rises to $67 the following December has a 52 Week Range of $1 - $67.

Volume: Actual amount of shares traded during the current or previous trading session.
AVG Volume: Stands for Average Volume. The average amount of shares usually traded during a trading session.

Market Cap: How much a company’s stock is worth. EX: A company has 10,000,000 shares available for purchase; each share is worth $10. This company’s market capitalization would be $100,000,000.

P/E: Stands for Price / Earnings. Indicates how much investors are willing to pay for every for a company’s profits. P/E is calculated by taking the price of a share and dividing it by a company’s earnings per share.

EPS: Earnings per share. The profits of a company divided by its outstanding shares. (Net Profit – Dividends / Outstanding Shares) Div & Yield: The dividend a company pays its shareholders. (Typically on a quarterly basis.)

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