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Your Online Guide » Guide to the Stock Market » Understanding the Stock Market

How To Read Stocks With This Easy Guide
by Carlie Evie, Car
Let's look closer at the table. You'll notice that there are twelve columns in the table; each stock has a line of its own. 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."

The next column is the name of the stock itself, followed by another column showing the stock's ticker symbol. Every stock is given 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 which, watching the financial shows on these networks will give you further help on how to read stocks and other aspects of the stock market.

Next to the ticker column is a column labeled "Div." From this column, you see how much in annual dividends the stock pays out for every 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. You get this number by dividing the current stock price by the earnings per share for the last four quarters.

The next two columns are "High" and "Low." In the day's trading, you'll be able to see the highest and lowest points that the stock has reached. "Close" is the point at which the stock closed that day, and "Net Change" shows the change from the day before.

With a basic understanding of how to read stocks, you can now move on and start learning more about the market itself.
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