Tutorial 14 : Reading Stock Quotes

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Once you've purchased some stock, it's important to know how to read a stock quote so you can keep track of how your investment is performing.

• Locate the abbreviated name for your stock. It is usually located in the third column.
• The first column (Hi) reports your stock's 52-week high. This is the highest price that has been paid for the stock in the last year.
• The second column (Low) reports your stock's 52-week low. This is the lowest price paid for the stock in the last year.
• The fourth column is the ticker symbol. This is how your stock is identified by the stock exchange.
• The fifth and sixth columns represent your stock's dividend and yield figures, respectively. "Div" is the cash amount that would be paid to shareholders yearly based on the most recent quarterly payment. "Yld" is the cash dividend divided by the closing price of the stock.
• The sixth column is the price-earnings (PE) ratio, which is calculated by dividing the closing price by earnings for the past four quarters combined. This provides a way to compare stock values.
• The seventh column (Vol) shows how many shares of the stock changed hands the previous business day.
• The eighth and ninth columns show the highest (Hi) and lowest (Lo) price paid for the stock on that day.
• The last two columns show the price at which the stock closed for the day (Close) and the net change (Net chg) from the day before.

Investing in the stock market can be fun, exciting and yes, even a little scary. But arming yourself with some basic knowledge about the market will help you take those first steps toward building your personal wealth.