Reading the stock tables in the newspaper can be very confusing when you’re just learning about the stock market. It’s important to learn how to read stocks, though, and it won’t take a lot of time.
Let’s look closer at the table. You’ll notice that there are twelve columns in the table; each stock has a line of its own. 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. 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.”
In the following 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. In fact, you might be able to recognize some of them. Maybe you’ve seen the tickers running across the bottom of the screen when you watch the news.
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 indicates the stock’s annual dividend paid out per share. Many rows will have this column blank, which means they don’t currently pay out dividends. The same goes for the next column - “Yield %” - the percentage return on the dividend.
P/E is the price to earnings ratio, which is calculated by taking the stock prices and dividing it by the the earnings per share over the last four quarters.
After that you will discover the columns of “High” and “Low.” These are the highest and lowest points that the stock reached in the day’s trading. “Net Change” refers to how much the stock price has changed from the previous day, and “Close” lets you know what the final price was when the stock market closed for the day.
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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