Many newspapers publish in their business sections the stock tables of the various stock exchanges and markets, including the New York Stock Exchange, American Stock Exchange, and The Nasdaq Stock Market. These tables typically list most of the actively traded public companies in the U.S. and include summaries of how a company's stock performed the previous trading day. They also provide information about any dividend payments and the company's price to earnings (P/E) ratio.
For further information on how to read a stock table, you may wish to visit the website of the New York Stock Exchange.
http://www.sec.go v/answers/stocktables.htm
S tock Market Table Terms
(1) Hi-Lo. The first column is the highest and lowest prices at which the stock traded in the past year (52 weeks). In our example, the highest price was $47 and the lowest was $37.
(2) Company Symbol. The second column is the abbreviated name of the firm issuing the stock. The symbol of the company stands next to the abbreviated name. In our case, it is "Z." This symbol is sometimes referred to as the company's "ticker symbol."
(3) Dividends. Dividends are the amount a company pays to its stockholders. The third column is the annual dividend paid per share. In our example, it is $2.30.
(4) Volume. The fourth column, titled "VOL," lists the volume of shares (in hundreds) that were traded that day. In our example, on August 23, 1999, 33,500 shares were traded by XYZ. Volume may give you an indication on the size of the breadth of the market for a company's shares.
(5) The YLD column approximates the dividend yield. The dividend yield is the current return on invested capital. We can use it to compare dividend returns for firms that have different stock prices. We derive the dividend yield by dividing the current dividend by the closing stock price. In our case the dividend yield is 5%, calculated as follows:
Dividend
$2.30
= 5.43%
Price (8th column)
$42.375
(6) The sixth column is the price to earnings (P/E) ratio. The P/E ratio compares the price per share to the earnings per share. It shows how much an investor is willing to pay for $1 of current earnings per share (EPS). The P/E ratio is calculated by dividing the price by the earnings per share (EPS). Applying this formula to our example we get the following:
Price (8th column)
$42.375
= 10
(the stock is selling for 10X the earning ratio)
EPS
$4.23
(7) The seventh column, titled Hi-Lo, represents the highest and lowest prices at which trades were completed during the trading day. In our example, the high was at $43 and the low was at $40.
(8) The eighth column, titled Close, is the last price at which a trade was made during the trading day. In our example it is $42 3/8 ($42.375).
(9) Finally, the ninth column of the table, titled Net Chg, stands for the change between the closing price for the previous day and the current day. Let's say XYZ closed at $41 3/8 on the preceding business day; hence on August 23, 1999 it closed higher by $1. The net change is measured in dollar value.
Note: Many newspapers, such as the Investor's Business Daily, often change the sequence of the provided information. Some newspapers may provide less information (e.g. only providing the closing price and not the high and low for the day).
Answered by
shepherd
, an ibibo Master,
at
9:36 AM on May 28, 2008