How to read the stock market is not as difficult to understand as one would think. Each and every company who is on the stock market is issued a 3 letter abbreviated name or ‘Symbol’, and through this symbol you are able to research what a particular stock is doing right now or even over the last year. This information is readily available on-line or from a number of other locations such as the business section of your local newspaper.
Basically what you have is a 52 week high which pertains to the highest value that a share of stock was worth in the past year, as well as the 52 week low. You may also find that other information may be available such as if there was a dividend release and if so how much it was per share of stock.
Furthermore you may also be able to tell what a particular share of stock has done in the previous week and if it is a gainer or loser you may also see the last day’s trends. More advanced data can be found on-line in the form of charts.
The most common terms you will see when looking at any stock’s value is the “High” or “Low” price, as well as the “Close” price which is the last price that was paid for that stock on the day you are looking. You will also see the “Change, or the difference between the previous close and the current one and of course the “Volume” or the number of shares that were traded during the time period.
The concepts on how to read the stock market for dummies are very simple. What is not simple is figuring when to buy, when to sell and if you would like to hold on to the shares for a longer term period. This is the most important information that the stock market investing for dummies guide tries to teach and is the key to creating sustained growth.
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