An overview of stock market reading

Many people know the stock market. However, most people are unfamiliar with terms such as “stocks,” “stock trading,” “stock charts,” and “bulls and bears.” The term “stock market” itself is also confusing. They have no economic knowledge. Sometimes they get confused when they hear neighbors complaining about low stock prices in the market or if a colleague is suddenly overwhelmed by their stock market investments. that the business can be created if these companies have acted properly in the “stock market game. , and if it has 20 shareholders per share, the holder would receive a dividend of $ 5,000.

Define the stock market

The stock exchange – also known as the “stock exchange” – is a financial institution in which authorized brokers market the company’s shares and other securities, including securities traded on a private exchange, which they allow to be traded on the exchange. Exchanges can take place physically or virtually. They buy and sell shares according to the needs and requirements of the people and / or companies they represent.

These two types of stock exchanges are …

• First Stock Exchange = Sellers and buyers to trade initial public offerings (IPOs) and other new numbers

• Second Stock Exchange = for buyers and sellers to trade shares in the market

Common Stock Market Conditions

The “lingo” of the stock market is nothing to confuse or feel. To understand stock market trends, you need to learn some of the most commonly used terms and evaluate stock market charts. By taking the initiative to learn the basics of the stock market, you will become a knowledgeable investor and be able to take good shares.

Let’s see some of the conditions you will probably find on the stock exchange …

Share Price = The value in which shares are bought and sold. Factors that directly affect stock prices are the position and performance of the company that issues the shares. Another term related to stock price is market capitalization, or simply market limit, which is the price of shares that is multiplied by the number of shares. Other factors affecting stock prices include current performance and expansion and future growth. Let’s put it in simpler terms. When a company goes wrong on the stock market, their share prices fall in value. Conversely, if these companies perform well, you will see that stock prices increase in value.

Reading Stock Market Charts = These tables and estimates provide a current statement of stock performance. These changes in shares may be reflected as “day to day” or “within the day” depending on the day-to-day trading.

52 High and low weeks = 52 weeks of data. On the day of notification, you will be able to view stocks with the lowest and highest prices during this 52-week period.

Share Type = Preference shares would have specific symbols written after the company name. If no such symbol is indicated, the action is the usual action.

Ticker symbol = Each company that trades on the stock exchange is given specific abbreviations or letters. These ticker symbols are used to list all companies on the tickter tape. All major U.S. stock exchanges – such as the New York Stock Exchange, the NASDAQ, the Dow Jones, and the American stock market – limit ticker symbols to only 1 and 4 letters (similar to heraldic symbols on British exchanges). Any new company should register its symbols compared to the symbols that other companies are already using. Some examples of ticker symbols are AAPL for Apple Computer Inc. and INTC for Intel. You will probably see that some symbols will have a period after them and 1 or 2 additional letters. A good example is BRK.B. This means that Berkshire Hathway Company offers stock and is a “class B” stock at a lower price.

Dividend per share and dividend on profits = In a stock chart, a company is said to pay dividends if both columns of these headings are met. You calculate Dividend Yield by dividing the annual dividend per share by the share price. This dividend yield means that the shareholder has a return on his dividends.

Price / Earnings Ratio or P / E Ratio = This value is calculated by dividing the final share price by the average earnings for the last 4 quarters.

Trading Volume = Day-to-day sales and purchase transactions.

Closing = The last quoted price of the stock exchange on the closing day of the stock exchange

Net change = The difference in stock market prices has occurred since the last change. The net change allows you to see the price direction of the options – while the plus sign goes in the positive direction, minus the sign in the negative direction.

Bulls and bears = The terms “bulls” and “bears” are economic indicators for the stock market. When the stock values ​​go up you have a bull market. That is an indicator of good health in the economy. In the bull market, investors can make big profits from stock sales. In contrast, the declining market is indicative of a downward economic trend, so investors need to sell their shares before prices can be much lower. During the bear market, many investors and businesses lose a lot, buying good shares and selling those shares quickly if they don’t fall quickly. The general rule to follow in the stock market is to buy when prices are low and to sell when prices are high (before prices fall).

Leave a comment

Your email address will not be published. Required fields are marked *