Crash Course Into Learning About Stock Quotes
Stock quotes are basically a collection of data investors must comprehend to achieve their goals in the stock market. Stock quotes list the prices for certain stocks at a particular point within the trading day. This essential information lets an investor know how to handle their investments wisely.
In days gone by, stocks were quoted in fractions. Today most stock exchanges express values in decimals. Stock quotes are available both online and in daily newspapers. Stock quotes are regularly updated throughout the trading day. What exactly do the numbers and symbols in the stock quotes mean? Most are actually simple to understand although they may look overwhelming. Sometimes looking at these columns of data gets confusing for newbies in the stock market.
Consider these common numbers and symbols in the stock quotes and their meanings:
Newspaper Stock Quotes
The easiest format to follow is the Wall Street Journal (WSJ) format. Below are the columns used for newspaper stock quotes with a brief explanation of each:
YTD % CHG - The Year-To-Date Percentage Change. Represents the stocks price percentage change for the year. The year-to-date percentage change is adjusted for stock splits and dividends over 10 percent.
Stock (SYM) - Where the stock name and symbols are found. Stock names are usually abbreviated with the symbols printed in bold. SYM are not printed in all newspapers.
Yield % - These are other disbursements paid to stockholders as a percentage of the price of the stock.
52-Week HI & LO - Two numbers listed in the column representing the highest and lowest price the stock was traded for within the past year. The previous trading day is not included.
PE - The Price To Earnings Ratio is the earnings per share over the closing price.
DIV - Dividend which reflects the yearly distribution rate based on the most recent regular disbursement for the stock.
VOL 100s - The sales volume expressed with two zeros missing.
CLOSE - The final price the stock traded for on a particular day which is no indication of the price the stock will open at the next trading day.
NET CHANGE - The amount a stock closed for today versus yesterday.
Footnotes - Notations indicating any extraordinary circumstances in the stock listing including highs and lows, first day of trading and unusual dividends.
Online Stock Quotes
Online stock quotes cover the same information as newspaper stock quotes. The major difference between online stock quotes and newspapers is the access to "live" information. Often the newspapers features stock quotes from yesterday while online resources provide updated information throughout the entire trading day.
Having access to online stock quotes gives investors the latest information from home or office at their convenience. Knowing the most recent information about stock market investments through online resources helps investors make the most advantageous trades. Stocks can be traded by the minute, hour or day with information provided by online stock quotes.
Once new traders have a solid understanding of what all the numbers and symbols really mean, stock quotes provide an absolute wealth of information regarding wise stock market investment. Stock quotes are invaluable to the astute investor.