Monday, January 18, 2010

Learn to Read Stock Market Quotes Before Investing

If you are going to be an investor, you need to learn to read stock market quotes. The standard quote box has 10 columns. This article will look at each column so that you can learn to read them.

The first box is the 52 week high price. The second column is the 52 week low price. If these two numbers are relatively close, you have a stock that is not fluctuating much over time. If, however, you see a 25 percent or more difference, you know that something is going on with the company. Compare those two boxes with column 3 which is the current price. See whether the current price is more closely aligned with the high or low price.

The fourth column is the symbol for the company. This is generally a 3 or 4 letter term and each company's symbol is unique. For instance, Microsoft is MSFT and McDonalds is MCD.

The fifth column is the dividend amount while the sixth one is the dividend yield which is the amount an investor should earn on each share of stock.

Next up is the price to earnings ratio. This is determined by dividing the stock's price by the company's per-share earnings for the most recent 4 quarters.

The 8th box is the trading volume which is the amount of shares sold the day before in thousands.

Column 9 is the high/low for the day before so that you can see how much movement there was then.

Finally, number 10 is the close and net change. This lets you know where the stock ended up at the end of the day.

If you want to be a savvy investor, you need to learn to read stock market quotes.

If you are just beginning to learn to read stock market quotes, you should check out the Daily Market Predictions at http://neuralindex.com/

Article Source: http://EzineArticles.com/?expert=Steve_Simons

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