Investment Basics: Reading Stock Tables

Stock tables are found in most daily newspapers. Many of us gaze over the rows and rows of numbers wondering what it all means. Let's go over some of the basics to increase your understanding of the stock tables and the role they play in investing.

Getting Started

There are different exchanges that report in the newspapers. One of these is the NYSE (New York Stock Exchange), which is an actual auction of stocks. A specialist on the floor of the exchange takes and fills orders. The NASDAQ is an electronic trading platform, where stocks are filled on a 'bid and ask' price, and everything is done electronically via computer. The AMEX, or American Stock Exchange, is a smaller exchange that has somewhat less stringent entry requirements than the NYSE. It also deals in options and American Depository Receipts.

Depending on the newspaper you are reading, there are abbreviated or extensive listings. The most extensive reporting can be found in publications like Barron's, Investor's Business Daily, and The Wall Street Journal, to name a few. Local papers will have a less extensive listing. Each publication will have an explanation box that will review the coding system for that publication. It is best to check that box each time you read the paper, because the reports can be different from day to day.

Explanations & Definitions

Part of the reason why the tables are difficult to read at first, is the fact that company names are abbreviated. A former source of difficulty was the reporting format, but this was made easier a few years ago with the switch from fractional reporting to decimal reporting. Currently, they are using a decimal system that is like our dollars and cents system without the dollar sign.

Let's review some of the basics regarding the information found in the columns of the financial section of the paper.

1. Hi: the high price for that stock during the past 52 weeks.
2. Lo or Low: the low price for the stock during the past 52 weeks.
3. Stock: the abbreviated name of the company.
4. Sym or Symbol: the ticker symbol for the company, this is sometimes referred to as the call letters.
5. Div or Dividend: the current dollar amount of the annual dividend per share. The dividend is income paid to a stockholder of the company.
6. Yld% or Yield: the dividend of the stock as a percentage of stock price (column 5 divided by column 11).
7. PE or Price Earnings Ratio: The price per share divided by earnings per share. PE is a significant measure because it measures the value of stocks. A high PE ratio means that share price relative to the earnings is high, and the stock may have a lot of growth potential, or it may be risky. A low PE ratio means the underlying earnings more closely reflect the share price – the company could be more established and more stable, or it could be in decline.
8. Vol 100s or Volume 100s: trading volume or the number of shares that were traded that day by hundreds. 1050 means 105,000 shares traded.
9. Hi: the highest price the stock sold for that day. Note: "u" means this was a 52-week high.
10. Lo or Low: the lowest price the stock sold for that day. Note: "d" means this was a 52-week low.
11. Close or Last: the price per share when the trading day ended. Note: the markets generally close at different times depending on the market (i.e., NYSE or NASDAQ) and if it is a holiday.
12. Net Chg or Net Change: the amount the closing price moved up or down from the prior day's closing price.

In addition to the alphabetical listings of stocks, you'll find summary boxes, which highlight items like top performers (or gainers), biggest losers, and most actively traded stocks. These are the companies getting the most action, depending on the market for that day.

How's the Market Doing?

People often ask, "What did the market do today?" They are wondering if the overall market was up or down for that day. This is reflective of the performance and strength of the market. Currently, we use indexes to measure the market strengths and weaknesses. The Standard & Poor's 500 index (S & P) is perhaps the most widely used measure to date, as well as the NASDAQ Composite Index and the AMEX Index.

Hopefully this brief review will help you to understand the basics of the stock tables. Start by reviewing the information on a daily basis and you will be able to understand more as time goes on.

Cindy Diccianni is a Registered Nurse, a Certified Senior Advisor (CSA), a Certified Long Term Consultant (CLTC), a Registered Investment Advisor and a Registered Representative with Leigh Baldwin & Company member NASD and SIPC. She is affiliated with Ortner, O'Brien & Ortner Advisory Group, Inc., Malvern PA. Her passion is assisting clients in creating financial freedom. You may contact her at Cindy@taxlegalfinancial.com.

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