How to Read Stocks & Other Financial Info
Investing in the stock market is an excellent way to prepare for a comfortable retirement or other long term goal, but the learning curve can be steep. There is a geat deal to know about the stock market, and it is important for the beginning investor to do plenty of homework before jumping in. The stock market is a volatile place at times, and preparing for that volatility is critical.
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Instructions
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Purchase several financial newspapers and publications. Papers like The Wall Street Journal, Barron's and Investors Business Daily contain full stock tables for all the major stock exchanges. This makes them an excellent resource for those just learning about the stock market.
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Open one of your financial newspapers and turn to the stock tables section. Review the column headings at the top of each section of the stock tables. Look at the current price of the stock, the most recent gain or loss and the amount of any applicable dividend.
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Calculate the dividend yield of the stock if it is not already included in the stock table. To calculate the yield on a stock, divide the amount of the annual dividend by the current price of the stock.
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Use a financial website such as Yahoo! Finance or Fool.com to learn about the stock market and how it works. These sites contain some excellent tutorials beginning investors can use to get started with their favorite investments.
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Track a few of your favorite companies using a spreadsheet program. Start by tracking the stocks of the companies whose products you use on a daily basis. Track the stock performance each day to get an idea of the volatility of the stock market over the short term.
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References
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