How to Read Stocks With This Easy Guide
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.
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.
The next column is the name of the stock itself, followed by another column showing 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.
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 goes for the next column - "Yield %" - the percentage return on the dividend.
The earnings ratio is indicated by P/E. You get this number by dividing the current stock price by the earnings per share for the last four quarters.
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. "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.
Visit How to Buy Stocks and get all the free help you need in discovering How to Trade Stocks, Stock Market Trends and so much more!
Published December 5th, 2007
