A Guide to How to Read a Stock Quote From Yahoo! Finance

by Sean on Saturday, November 10, 2007 Article Rating 5.0 stars

This guide will show you how to read a detailed stock quote from the most popular financial site, Yahoo! Finance. This will go through each of the components of a quote and what they mean and how they are calculated.

This is an example of a stock quote for Bank of America on Yahoo! Finance:

 

Steps

  1. The first listing in the blue box is the name of company and the ticker symbol. The ticker symbol is an abbreviation of the company assigned the stock exchange it is traded on. Examples of stock exchanges are the NYSE, NASDAQ, American Stock Exchange, and the London Stock Exchange.

  2. Last Trade: The Last Trade is the last price the stock was bought or sold for on the exchange.

  3. Trade Time: This is the time of day the last trade happened. Most United States exchanges are open from 9:30 am eastern time to 4:00 pm eastern time.

  4. Change: The change is the dollar amount and percentage change from the previous days' closing price.

  5. Prev. Close: The previous close is the last price the stock traded for on the prior day.

  6. Open: The Open is the first price the stock traded at the time the stock exchange opened for the day.

  7. Bid: The Bid Price is the current price you would be able to sell your stock at on the exchange.

  8. Ask:

  9. Ask:

  10. Ask: The Ask Price is the price you would pay to buy the stock on the open market.

  11. 1 Yr Target Est.: The Target Estimated price is what a group of financial analysts think the stock price will reach in the next year.

  12. Day's Range: This shows the highest and lowest prices the stock has traded at during the day.

  13. 52 Wk Range: This shows the highest and lowest prices the stock has traded at in the last year.

  14. Volume: This shows the total number of shares traded so far during the current trading session.

  15. Ave.

  16. Ave Vol. (3 mon): This shows the average number of shares traded in the past three months.

  17. Market Cap: This shows the total value of the company on that day. It is calculated by taking the stock price times the total number of shares outstanding.

  18. P/E: The P/E is the Price to Earnings Ratio. This is calculated by taking the price of the stock and dividing it by the earnings per share of the stock. The average P/E ratio is between 16 and 24 depending on the industry the company is in.

  19. EPS: The EPS is the Earnings Per Share. This is calculated by taking the net earnings of the company is the prior quater and dividing it by the total number of shares outstanding.

  20. Div & Yield: This the Dividend per share the company pays each quarter for owning a share of stock. The Yield is calculated by taking the dividend and dividing it by the share price. You can compare this yield to the yield of a savings account or a certificate of deposit.

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About the Author

Sean

Sean

Member since Tuesday, September 26, 2006

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Sean is a business development, sales, fund raising, Internet marketing and professional networking expert. Sean enjoys coaching and mentoring small businesses and entrepreneurs on how to start and grow their companies. When he is not working, Sean likes spending time with his family, vacationing in Palm Island, Florida, and doing home improvement projects.