How to read stock market ticker

How do I read the stock market ticker?

The stock ticker shows price information on a wide range of stocks.

Investing in the stock market can be an exciting way to increase your income or retire. Stock traders rely on the stock market ticker for valuable information about their stock holdings in newspapers, on television and on the internet. Knowing how to read a stock market ticker is critical to becoming a successful trader.

Understand the stock market and the purpose of the ticker. When corporations want to raise a large amount of debt-free capital, they issue shares in the company, called stocks, to the public or a select group of people. Shares in listed companies can be bought and sold on stock exchanges around the world. The stock ticker is a continuous account of the most important information about each stock, which often changes during the day. Stock tickers generally only contain stocks from a single exchange or country, and they can also contain information about bonds, mutual funds, and commodities.

Analyze the ticker names of individual stocks. The abbreviations with one to four letters shown on the stock market ticker represent individual public companies. Apple Corporation, for example, is listed on the NASDAQ stock exchange as AAPL. Ford Motor Company, as another example, is listed simply as an "F" on the New York Stock Exchange.

Analyze the first number by name: the current stock price. Share certificates are sold to the public by companies at set prices. The market price - the price at which the buyer and seller agree at a given point in time - can vary significantly from the face value of the stock over time. Compare the current price of a stock on the ticker with the previous price data to see whether it is moving positively or negatively over time.

Understand the meaning of the arrow following the stock price. The green up arrow and the red down arrow represent an increase or decrease in the price above the opening price of the day.

Look at the next number: the actual rise or fall in the stock price. Just compare this number to a stock's price history for relevant insight. When comparing a stock to other stocks, you are using the next important piece of information.

Analyze the final number: the percentage change. This number indicates the size of a stock price's gain or loss compared to its total value. Percentage change data can help you determine a stock's performance compared to other market participants. For example, imagine a stock trading at $ 100 a share and a stock trading at $ 10 a share. If the $ 100 stock goes up $ 30 and the $ 10 stock goes up $ 5, comparing the actual increases would indicate that the first stock performed better. In the percentages, however, we see that the first stock is only up 30 percent while the second stock is up 50 percent.

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Author: Omar Sparks

Omar Sparks is a 56 year old journalist. Certified music expert. Writer. Bacon Evangelist. Travel junkie. Avid zombie lawyer. Analyst. Twitter specialist.