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An Overview on Reading the stock exchange

A lot of people are familiar with the stock exchange. However, most individuals remain unfamiliar with terms like "stock", "buying and selling of stocks", "stock market charts, and "bulls and bears". The term "stock market" itself remains an item of confusion for those who don't have financial expertise. Occasionally they would scratch their heads in bewilderment every time they hear their neighbors complain concerning the low prices of stocks available on the market or if a colleague suddenly gets a huge windfall from his stock exchange investments. What many people are aware of is that the trading on the stock market can lead to booming or bankrupt businesses if these businesses have played the "stock market game" correctly. Simply put, stocks are representations from the company's assets and profits. If the company makes a make money from the stocks, this value is split yearly among the shareholders by means of a dividend. For example, if a company makes a profit of $100,000 this year, and it has 20 shareholders holding 1 stock each, the shareholders would get a dividend of $5,000.

The Stock Market Defined

The stock market - also referred to as the "stock exchange" - is really a financial institution wherein licensed brokers trade company stocks and other securities - including privately traded securities - that are approved for trading by the exchange. Exchanges can happen physically or virtually. Brokers purchase and sell stocks based on the requirements and needs of the people and/or companies they represent.

The two types of stock financial markets are...

• Primary Stock Market = for trading of Initial Public Offerings (IPOs) along with other brand new issues by sellers and buyers


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• Secondary Stock Market = for trading of existent stocks on the market by buyers and sellers

Common Stock Market Terms

Stock market "lingo" is nothing to be confused or feel daunted about. To be able to understand the trends within the stock market, you need to learn certain widely used terms and be able to assess stock exchange charts. By taking the initiative to learn the basics of the stock market, you will be transformed into an experienced investor and be able to make good stock decisions.Visit website  for more info Saginaw pool service

Let us take a look at some of the terms that you will most likely encounter around the stock market...

Stock price = This is the value for which stocks are purchased and sold. Factors that directly impact on stock prices are the position and performance of company issuing the stocks. Another term related to the stock prices are the market capitalization - or just market cap - the stock price multiplied by the number of shares. Other factors that affect stock prices include current performance and expansion and future growth. Let us put it in simpler terms. If your company is doing poorly within the stock market, their stock values decline in value. In comparison, if these companies are performing well, you will notice the stock prices skyrocket in value.

Reading Stock exchange Charts = These charts and quotes supply the current status from the performance of the stocks. These stock changes could be reflected as "day-to-day" or "intra-day" with respect to the trading on that specific day.

52 Week High and Low = This consists of stock data during a period of 52 weeks. Around the date of reporting, you will be able to see the stocks with the lowest and highest prices in this 52-week period.

Type of Stock = Preferred stocks would have specific symbols written after the company name. If no such symbols are indicated, the stock is a common stock.

Ticker Symbol = Every company trading around the stock market is assigned an abbreviation or specific letters. These ticker symbols are used so that all the companies could be listed on the ticker tape. All the major stock exchanges in the U.S. - like the New York Stock Exchange, NASDAQ, Dow Jones and American Stock market - restrict ticker symbols from 1 to 4 letters only (similar to the heraldic symbols in the British exchanges). Any new companies should register their own symbols, which should be different from the symbols that are already being used by other firms. Some examples of ticker symbols include AAPL for Apple Computer Inc. and INTC for Intel. You will likely observe that some symbols would have a period followed by 1 or 2 additional letters. One good example is BRK.B. This means that the stock is being offered by Berkshire Hathway Company and it is a lower priced "Class B" stock.

Dividend Per Share and Dividend Yield = On a stock market chart, a company is said to be issuing dividends if each of the columns with one of these headings are chock-full. You compute the Dividend Yield by dividing the annual dividends per share by the price per share. This dividend yield implies that the shareholder includes a return on his dividends.Visit this site for more info pool service in Saginaw, TX

 
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