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What is meant by stock quote and how to read it ?

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These days stock market is the most attractive mode of investment for investors and traders. With different goals people invest their money by buying stocks of some company and earn returns on their invested capital. There are more than 5000 stocks listed on exchange and each stock need to have some unique set of identification code using which it can be identified. Using these codes traders can easily identify stocks they are looking for and further trade in it using their Demat account and trading account.
what-is-a-stock-ticker-symbol

Meaning of Stock symbol

On huge billboard outside BSE and NSE often a ticker is seen which constantly shows bunch of letters and numbers in green or red color. These bunch of letters represents the stock symbol and numbers show their respective stock price. A stock symbol is a unique code which is give to all companies which are listed on the exchange. For example INFY stands for infosys likewise every company has some unique name know as it is stock symbol.

How you can read stock quote and its significance

While trading in stock market you need to know various details regarding stock in which you are trading. Stock symbol enables you to get that those details in an authentic manner. If you want to earn good returns then it is important to buy stock at low price and sell it at high price and for this purpose at different time interval you need to get stock details.

Following are the few elements of stock table/stock quote
  • Company name and symbol
A stock table needs large space to put details of as many stocks as possible. Because of this reason instead of company name its respective symbol is mentioned. On internet you can find company's name as well.
  • Stock price
Every stock has its own price and it is the price which traders has to pay to buy it. It keeps on fluctuating because of several factors during market hours. Also it shows the value market has give to that particular company.
  • High/low
This is a very useful piece of information to know a particular stock's performance. As we know price of stocks keeps on fluctuating , to give a base to traders for comparison stock quotes mentions the highest and lowest hit of a stock on a particular day. If it is rising continuously the high would keep climbing and vice-versa. After market closing hours difference in highest and lowest tells about the volatility of stock's price.
  • PE ratio and dividends details
Some table mentions PE details where as some not. PE ratio indicates the amount investors pays for each rupee the company earn in whose stocks he has invested. Depending on company's performance this ratio varies. A high PE ratio indicates that stock is costly.
Dividend is the amount which company pays to its shareholders. Such details helps to learn how much return you are likely to earn by trading in its stocks.
These are few details a stock quote offers to traders. They are easily available on internet and different business channels. Pehla trade is among growing discount brokers and offers all these necessary details related to stocks to traders on its trading platform. Open free demat account with us and enjoy to trade at Rs1/executed order. With us you can focus more on trading and less on brokerage.
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