Stock market news is all around us every day in various forms. It is on TV, it is on the ticker tapes in financial buildings, it is in the newspaper in the form of stock tables and it is on the internet. So how do you get the feeling that all financial data is coming from these resources? Learn to read on the stock market is an essential requirement for becoming a successful investor.Here are the basics you need to know.
How to read stock market tables
Open any newspaper that the financial section and you'll see a table full of numbers, arrows, and letters. This is usually a stock table and it wraps on stock market performance for that day, as well as provide previous data for comparative analysis.
Each paper stock tables may be slightly different, in General, they all contain the same basic info. Here is how you view the stock market:
52 week high: this figure gives you the highest price for a particular stock over the past 52 weeks. It is crucial to determine performance in stock over time and analyze trends.
52 week low: this figure will give you the lowest price for a share in the last 52 weeks (almost a year). It is also important for the evaluation of trends and performance. When combined with the 52-week high figure, it should give you an accurate assessment of the stock's annual performance.
Name/Symbol: column contains both the name of the company and its stock symbol. A stock ticker symbol is usually 3-letter symbol used to identify companies in the stock market. You need to know the stock symbol of a company you invest in, so you can track their performance over time and also when you use the internet to find stock quotes. Companies often pick memorable ticker symbols, such as Genentech, biotechnology companies, the stock ticker symbol DNA.
Distribution: the amount paid on an annual basis by a company that profits to its shareholders.
Volume: the number of shares traded today for a particular stock.
Capacity: the yield is calculated as a percentage of dividends paid divided by the share price. the yield of a given stock can change daily, depending on its share price for that day.
P ratio: this ratio is simply the price of a stock divided by its earnings per share. In General, a lower p/e ratio is desirable because it would mean that the company is an affordable investment for the current price.
Last day: this would be the current share price, or whenever the stock last traded on a working day.
Net change: net change measures share price differences between its current price and the price the day before, and then reports the change in percentage.
How to read stock market Ticker Tape
The stock market ticker tape runs on TV channels, as well as outside financial buildings, and the Internet. It is usually a quick look at how different stocks perform on the current day. It is used to denote stocks of their mark, which can be anywhere from one to four letters. Some companies shorten their business, so Google's symbol is GOOG, while other companies use their full names, such as NIKE.
Ticker shows usually also a green arrow, indicating the increase in the share price, or a red arrow shows a decrease in share price followed by a single percentage specifies the amount of change in the share price for today's trading.
Both layers, tables, and stock tickers are useful for an investor to monitor and track stock performance. Knowing how to read on the stock market is crucial for any investors because stock investing is about to make, and then monitor your investment so that you can adjust your stock portfolio optimal market conditions.
Kelly Clifford from StockMarketsMadeSimple.com has put together a free report called "stock market basics: A Beginners Guide to understanding the stock market" which is likely to be invaluable in putting you on the fast track to becoming a knowledgable and successful stock market investor. To download your copy right now ... click here
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