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

What is MIS, NRML and CNC order types in stock market ?

By
MIS (Margin Intraday Square Off) MIS order types are for intraday traders and need to squared off during the same trading day. It will be activated till that particular trading day only.The biggest advantage of this order type is that while buying shares using it traders need not to pay the entire amount only a margin amount is required to be paid.Because of this feature traders can buy more number of shares with less capital. If in case position is not squared off or converted into other order types by the traders end then it will be automatically squared off by RMS few minutes before the market closes. If you want to strictly trade on intraday basis then you can rely on usage of such order type. As here you need to worry about squaring off your position, it will automatically get squared off before market closes. NRML (Normal Order) NRML order type is used while trading in future market. It is used to carry forward trade orders in derivatives segment. This order type w...
Post a Comment
Read more

Buy back stocks: Meaning, advantages & disadvantages.

By
Meaning of buy back stocks Buyback stocks is a process where companies repurchase its stocks from stockholders or open market. This is generally considered to be a good sign as it is one indirect way for companies with surplus cash to maximize the wealth of its stockholders.A company with surplus cash prefer to buy its stocks when current market price of stocks is less than book value or what they expects it to be. Companies buy their stocks at a premium price and this leads to increase in stock price. Possible reasons for buyback are discussed below: 1) To increase stockholders value as company uses its surplus funds which is not suitable for any investment options it results in higher earning per share. 2)For protection against corporate takeovers. Buyback helps in increasing the promoters holding thereby reducing the chances of takeover. 3)To improve financial ratios as buyback reduces the cash component on companies balance sheet. Advantages of buyback : 1)Com...
Post a Comment
Read more

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