Every guy should have some money in the stock market and, at the very least, in a 401(k) program. If you have invested properly, over time, you will earn a return on your investments that will lay the foundation for future wealth. If you aren’t interested in or capable of managing your investments, hire a broker to do the heavy lifting. You can keep track of your portfolio by reading the newspaper or visiting financial web sites. Here’s how you can evaluate the performance of any given stock:
1. Locate the abbreviated name of the company or its New York Stock Exchange ticker symbol.
2. The “52 week Hi” and “52 week Lo” are the highest and lowest price that stock has sold over the past year. This will give you an idea of the price fluctuation over a period of time.
3. The “Div” is the dividend the stock is paying out to shareholders projected out for the year based on last quarter’s reporting. The “Yld” is the dividend divided by the closing price of the stock. This percentage offers a glimpse of the return on your investment.
4. The “PE” is the ratio of the stock’s price compared to the company’s earnings. This is a good ratio to use when comparing stocks because it factors in the actual success of the company in the marketplace.
5. “Vol” lists the number of trades executed on that stock the previous day. This gives you a good idea about the demand for that stock.
6. The “daily Hi” and “daily Lo” are the highest and lowest price that stock has sold for during that day.
7. “Close” and “Net Chg” indicate the price of the stock when the market closed and how that compares to the day before. This number gives you a good idea of which direction the stock is moving.
April 13th, 2010 at 10:30 am
Wonderful, basics what is essential for the novice. A great start to understanding the market. Thanks.