Skip to main content

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

By
banner-772x250

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.
Labels:

Comments

Post a Comment

Popular posts from this blog

How to open a Demat account and what benefits are offered by dematerialization?

By
With the introduction of new technologies trading in the stock market has changed a lot. Earlier when BSE was formed in 1875 at that time traders and investors used to stand on floor and shout prices of stocks for buying and selling. The money was exchanged between buyer and seller and a physical copy in the form of certificate was issued to the buyer.The entire process was very time-consuming. In 1996 concept of dematerialization was introduced in share market. Physical copies of shares were replaced by electronic form and were credited and debited from the Demat account of a trader. Following are the benefits offered by dematerialization : 1)Common bank In Demat account along with shares, other financial instruments like bonds can be stored as well. Traders can use the same account to trade in stocks and bonds both. 2)Time and cost To deliver a physical copy of shares cost is involved and also it takes the time to do so. With dematerialization, this cost and time c...
Post a Comment
Read more

What is meant by stock market trend and its types ?

By
Market Trend Stock market is of highly volatile nature and we often notice ups and downs at stocks price charts on daily basis. To some extent market trend is responsible for these movements in stocks prices. Understanding market trend is very much important to perform quality technical analysis. In general term market trend is broad upward or downward movement in a stocks price over a period of time. As we know stock prices can be volatile and does not necessarily follows a straight line by zooming price chart a defined market trend can be identified. Discount brokers offers such necessary details about market trend, price charts and more on their trading platform itself. Three major types of market trends are discussed below : 1) Uptrend When market is following upward trend then at that time both tops and bottoms of a stock chart keeps on increasing. Everyday stock price touches a new high and falls lower than it did on the earlier day. Do not frame a misconception th...
Post a Comment
Read more

How would you differentiate between Traditional brokers and Discount brokers?

By
A brokerage firm is a financial institution that enables traders and investors of stock market to buy and sell financial securities. To execute any contract in stock market two parties are required buyer (long position holder) and seller (short position holder). Basically a broker act as an intermediary between buyer and seller and facilitates them to trade on various financial securities. In return brokerage firms receives compensation in the form of commission/fees once the transaction has been executed. We have two types of brokers : 1)Traditional Brokers 2)Discount Brokers Traditional brokers or full service brokers are the oldest brokers in stock market. They usually undertake more then simply acting as an intermediary to execute the trading process.There services also includes proper researching of stock market to offer necessary recommendations to stock market players as well.Often these firms also offers margins loans in addition to certain client to purchase investment on cre...
Post a Comment
Read more