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How to Read the Stock Market Page

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

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How to Read the Stock Market Page

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  1. How to Read the Stock Market Page

  2. 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

  3. Stock • Varies by Newspaper • Either company abbreviation or ticker symbol • In A-Z order

  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 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

  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 Close P/E Ratio 40.00 20 Earnings per Share: ABC – $2.00

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