Finance Articles

When you're first learning about the stock market, the stock tables in the paper can be quite confusing. Though it might be intimidating, it's important to learn how to read stocks. Don't worry, it won't take much time.

To begin, you'll notice that there are about twelve columns across the table, and each stock has its own line. 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." 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 follow column you'll see the actual name of the stock. This will be followed by another column that shows the stock's ticker symbol. Each stock has a unique combination of letters. You will probably recognize some of these from the tickers that run across the bottom of the screen sometimes on the cable news networks.

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.

Next to the ticker column is a column labeled "Div." This column shows you the annual dividend the stock pays out for each share. If you see a blank space in this column, that means the stock doesn't pay dividends right now. The same rule also applies to the very next column, "Yield %", the percentage return on the dividend.

The earnings ratio is indicated by P/E. Dividing the current stock price by earnings per share for the last four quarters gives you this number.

"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. "Close" is the point at which the stock closed that day, and "Net Change" shows the change from the day before.

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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