How to Read Stocks Without Being an Investing Genius
When you're first learning about the stock market, the stock tables in the paper can be quite confusing. Though it might be intimidating, it's important to learn how to read stocks. Don't worry, it won't take much time.
There are twelve columns in the table, and you'll notice that each stock has its own line in this table. Let's examine the first two columns, which are usually named something like "52W High" and 52W Low." These tell you about the stock's performance over the last 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. There's a unique combination of letters for each stock. 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.
By the way, watching some of the financial shows could be a good idea. It will further your knowledge even more on how to read stocks and understand the way the market works.
Next to the ticker column is a column labeled "Div." From this column, you see how much in annual dividends the stock pays out for every share. If you see a blank space in this column, that means the stock doesn't pay dividends right now. The same rule also applies to the very next column, "Yield %", the percentage return on the dividend.
The earnings ratio is indicated by P/E. Dividing the current stock price by earnings per share for the last four quarters gives you this number.
"High" and "Low" are the next two columns. You'll be able to see the lowest and highest point the stock has reached in the day's trading. "Net Change" shows the change from the day before; "Close" tells you the point when the stock closed for the day.
With a basic understanding of how to read stocks, you can now move on and start learning more about the market itself.
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Published December 5th, 2007
Filed in Management, Marketing
