How to Read Stocks With These Simple Tips

If you’re just starting out learning how the stock market works, reading the stock tables in the paper can be 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. To find out how the stock has been performing over the past year, look at the first two columns– these will be labeled something to the effect of “52W High” and “52W Low.” You’ll see the highest point the stock has achieved in the last 52 weeks in the “52W High” column. Its lowest value will be in the “52W Low” column.

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 TV, you might want to watch the financial shows. They can give you a lot of help and information that will show you how to read stocks and understand the stock market even better.

“Div” is the column that comes after the ticker column. 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 percentage return on the dividend shows up in the “Yield %” column, though it too will be blank if the stock doesn’t pay out dividends.

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.

“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.

The Lastest posts in Stock Market

Quit Your Day Job With Forex Market Trading
Forex market trading is referred to as a number of things including the FX marke...
http://www.bizarticlezone.com/finance/currency-trading/quit-your-day-job-with-forex-market-trading-1152/

What is Next with the Markets? Volatility Will Show the Way
It would be hard to imagine a more interesting and chaotic time in the financial...
http://www.bizarticlezone.com/finance/stock-market/what-is-next-with-the-markets-volatility-will-show-the-way-1116/

Options Trading is an Exciting Way to Invest in Stocks and Bonds
An option is simply a contract that says that within a certain time frame; you w...
http://www.bizarticlezone.com/finance/stock-market/options-trading-is-an-exciting-way-to-invest-in-stocks-and-bonds-1110/

Learn The Basics Of Stock Day Trading
Stock a trading is considered to be controversial by some people. Day trading pr...
http://www.bizarticlezone.com/finance/stock-market/learn-the-basics-of-stock-day-trading-941/

Profit Using The Power Of Online Stock Trading
With all the advances in technology over the past number of years online trading...
http://www.bizarticlezone.com/finance/stock-market/profit-using-the-power-of-online-stock-trading-840/

Stock Trading Analysis Software - Building My Own Portfolio.
In trying to better understand what I should be doing with my investing, I've be...
http://www.bizarticlezone.com/finance/stock-market/stock-trading-analysis-software-building-my-own-portfolio-214/

How To Start Stock Trading
The first thing a new investor should know in learning the basics of understandi...
http://www.bizarticlezone.com/finance/investing/how-to-start-stock-trading-172/

How To Buy Good Cheap Stocks
Penny stock trading software is a tool every serious professional penny stock in...
http://www.bizarticlezone.com/finance/stock-market/how-to-buy-good-cheap-stocks-61/