How to Read Stocks Without Being a Stock Genius
If you're just starting out learning how the stock market works, reading the stock tables in the paper can be confusing. It's important to learn how to read stocks, though, and it won't take a lot of 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. The names are pretty suggestive; "52W High" reveals the highest value the stock has reach in the past 52 weeks. Its lowest value shows up in the "52W Low."
The next column is the name of the stock itself, followed by another column showing 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. You'll know the stock doesn't pay out dividends if this particular column is blank. The same goes for the 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.
The next two columns are "High" and "Low." In the day's trading, you'll be able to see the highest and lowest points that the stock has reached. "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




