Stock quotes often seem complicated because of the terminology used. But surprisingly, it’s very easy to understand.
Take the stock quotes of Google Inc for instance,
Starting from the left :
- Previous Close– It refers to the closing price of the stock on the preceding day of trading. If today is Tuesday, then previous close would be closing price of the concerned stock on Monday.
- Open– Open is the opening price of the stock. Now, why is it different from the previous close is because of the fact that a number of factors can affect the price of a stock in between the closing and the opening bell, a good news can lead to an increment while a bad one can do the opposite.
- Bid– Bid is the maximum price a buyer is willing to pay for the stock.
- Ask– Ask is the minimum price at which seller is willing to sell his stock.
(The number alongside both bid and ask, ie, 300 represents the lot size, one lot is equivalent to 100 shares. In this case 300 represents 30,000 meaning you can sell/buy this much shares at the given price)
- 1 y Target Est (1 year target estimate)– It is nothing but an estimate of the future price of stock done by the analysts.
- Beta– Beta measures the systematic risk of a security with respect to the entire market. There can be three cases:
Beta=1 : This implies the security will move with the market.
Beta<1: This implies that the security’s price will be less volatile compared to the market.
Beta>1: This implies that the security’s price will be more volatile compared to the market.
In this case, it is 1.23 which means it will be 20% more volatile than the market.
- Next Earnings Date– It refers to the date on which the company will report its earning for the previous quarter.
Moving on to the right:
- Day’s Range– Day’s range conveys the highest and lowest prices of the stock traded on that day.
- 52wk Range– It shows you the lowest and highest price at which the stock has been traded in the past 52 weeks.
- Volume– Volume refers to the number of shares traded on the given day.
- Average Volume (3m)– Average volume is the average of shares traded over a period of time, in this case the time period is 3 months (3m)
- Market Cap– Market Capitalization refers to the market value of its outstanding shares (shares held by shareholders, institutional investors, etc). It is calculated by multiplying number of outstanding shares with the prevailing market price.
- P/E (ttm)– P/E refers to Price of the share/ Earnings per share from the last 12 months ( ttm- trailing twelve months). It tells you that how much an investor is willing to pay per dollar of your earnings.Here it is 21.95, implying that an investor will pay $21.95 dollar for each $1 of the earning that the company generates.
- EPS (ttm)– Earnings per share (EPS) refers to the amount of profit allocated to each share out of the total profit. It is calculated by subtracting dividends from profits and then dividing it by the number of shares outstanding.
- Div & Yield– It provides information about the dividend and yield. Dividend refers to the payment made by the company to its shareholder and yield is the ratio of the same expressed in percentage terms. For example: A share of $100 gives you a dividend worth $50 then the yield would be 50/100 x 100= 50%. If its mentioned that it is NA, this implies that the company does not offer dividend.
I hope it helped. Contact me in case of any queries. Thank you 🙂