How to Read a Newspaper or Internet Stock Market Table/Quote

Many people track the results of their investments using the stock table quotes in the business section of their newspapers, or online using their computers. The table will look something like the image posted. The stock table provides you with essential information about the company's stock price (valuation). Stocks are always listed alphabetically from A to Z. The information provided by a stock table or quote is the most current data available on a stock. It gives you an idea of the supply and demand for a stock and some basic information. Following a stock that interests you can often tell you a bit about the company and how it trades.

Click on the image posted to see the indiviual columns and read the article steps to learn what they mean.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Daily newspaper
• Internet connection

1. Columns 1 and 2 are the 52-Week High and Low - This is the highest and lowest price paid for a single share of stock over the previous 52 weeks (one year).

2. Column 3 is the Company Name and Type of Stock - This column lists the name of the company. If there are no special symbols or letters following the name, it is common stock. Different symbols imply different classes of shares. For example, "pf" means the shares are preferred stock.

3. Column 4 is the Ticker Symbol (SYM) - This is the unique alphabetic name which identifies the stock issued by the firm. If you are looking for stock quotes online, you can search for a company by the ticker symbol.

4. Column 5 is the Dividend Per Share - This indicates the annual dividend payment per share. If this space is blank, the company does not pay out dividends.

5. Column 6 is the Dividend Yield - The percentage return on the dividend. Calculated as annual dividends per share divided by price per share. Some companies do not pay regular dividends. The company's board of directors decides on the amount, which is usually paid quarterly.

6. Column 7 is the Price/Earnings Ratio - This is calculated by dividing the current stock price by earnings per share from the last four quarters. The higher the P/E, the more investors are paying for the company's earning potential.

7. Column 8 is the Trading Volume - This figure shows the total number of shares traded for the day, listed in hundreds. To get the actual number traded, add "00" to the end of the number listed, or multiply the number in the column by 100.

8. Columns 9 and 10 are the Day's High and Low - This indicates the maximum and minimum price range people have paid for the stock throughout the day.

9. Column 11 is the Close - The close is the last trading price recorded when the market closed on the day.

10. Column 12 is the Net Change - This is the dollar value change in the stock price from the previous day's closing price. A (+) sign indicates a higher price; a (-) sign indicates a drop in price. When you hear about a stock being "up for the day," it means the net change was positive.

Tips & Warnings

• Many newspapers, such as the Investor's Business Daily, often change the sequence of the provided information. Some newspapers may provide less information, such as only providing the closing price and not the high and low for the day.
• Nowadays, it's far more convenient to get stock quotes off the Internet. This method is superior to newspapers because most sites update throughout the day, plus you get more information, such as up to date news and more. Though online quotes are similar in many ways to traditional stock tables, because of the dynamic nature of the Internet there are a few additional terms you may encounter when looking at quotes online.
• Simply enter the ticker symbol into the quote box of any major financial site like Yahoo! Finance, CBS Marketwatch, or MSN Moneycentral. Interpreting the data is exactly the same as with the newspaper.