How to Read Stocks Without Being an Investing Genius
Reading the stock tables in the newspaper can be very confusing when you're just learning about the stock market. Though it might be intimidating, it's important to learn how to read stocks. Don't worry, it won't take much time.
To begin, you'll notice that there are about twelve columns across the table, and each stock has its own line. The first two columns (usually labeled something like "52W High" and "52W Low") are dealing with the stock's performance over the past year. "52W High" shows the highest point the stock has reached in the past 52 weeks, and "52W Low" shows the lowest.
In the follow column you'll see the actual name of the stock. This will be followed by another column that shows the stock's ticker symbol. Every stock is given a unique combination of letters. Perhaps you'll even recognize a few (or more than a few) of these tickers. They periodically run across the bottom of the screen of cable news networks.
Speaking of which, watching the financial shows on these networks will give you further help on how to read stocks and other aspects of the stock market.
Next to the ticker column is a column labeled "Div." This column shows you the annual dividend the stock pays out for each share. You'll know the stock doesn't pay out dividends if this particular column is blank. The percentage return on the dividend shows up in the "Yield %" column, though it too will be blank if the stock doesn't pay out dividends.
P/E is the price to earnings ratio. Dividing the current stock price by earnings per share for the last four quarters gives you this number.
The next two columns are "High" and "Low." You'll be able to see the lowest and highest point the stock has reached in the day's trading. "Close" is the point at which the stock closed that day, and "Net Change" shows the change from the day before.
You'll be able to move on and learn even more about the stock market once you have a basic understanding of how to read stocks.
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Published December 5th, 2007
Filed in Business, Management, Marketing, Society




