Newspaper Stock Quotes. Calendar year change in price so far this year. Dec. 31 st price = $50 $55.50 - $50 = $5.50 increase 5.50 50. =.11 = 11%

Newspaper Stock Quotes

Calendar year change in price so far this year.Dec. 31st price = $50

$55.50 - $50 = $5.50 increase

5.50 50. = .11 = 11%

Highest price over the last 52 weeks

Lowest price over the last 52 weeks….............

Name of company abbreviated

Stock symbol (how stocks are bought and sold)

This

letter signifies a stock split (or stock dividend)

within the last 52 weeks.

Pepsicos(PEP)

• Own 1 share of XYZ stock = $90

• Stock split is declared

• Now own 2 shares ($45 ea.) = $90

What is a Stock Split? (2:1)

Reverse Stock Split? (1:2)

• Own 2 shares of XYZ stock = $90

• Stock split is declared

• Now own 1 shares = $90

A preferred stock is

so-named because its owner receives preferred

treatment relative to owners of

common stocks.

Pepsicopf (PEP)

The latest annual

dividend the company has paid to stockholders.

A dividend is a portion of the company's

profits that it pays to stockholders.

DIVIDENDS

• A company can only pay its stockholders dividends if it earns a profit.

• Still, many companies that earn a profit don’t pay dividends because they prefer to keep the money to reinvest in their growth.

DIVIDENDS

Consider a quarterly dividend (paid every three months, or quarter of a year) of $0.15.

In order to express this amount at an annual rate, you would multiply it by 4, since there are 4 quarters in a year.

The newspaper would then report a dividend of 4 x $0.15 or $.60 per share.

The yield is the latest annual dividend divided by the stock's latest closing price.

Many companies don't pay dividends, however, so this column would be blank.

But Invest Mints did pay a dividend of $1.10 per share, which is 2.0% of its closing price of

$55.50. ($1.10/$55.50 = 0.02 = 2.0%). So the 2.0 shown in this column means the

company's dividend yield was 2%.

YIELD

• Yield = latest annual dividend/stock's closing price

price/ earnings ratio, which is a company's closing price divided by its annual earnings per

share (usually after deducting taxes).

If last year's earnings are used, it is called the trailing P/E ratio.

. Invest Mints' earnings per share for the most recent year was $1.50 (not shown in table).

Dividing the closing price of $55.50 by this number yields a PE of 37 ($55.50/ $1.50 = 37).

• If a company loses money during the year, it will have no earnings to put in the denominator of the PE ratio. - company’s GROWTH RATE

• In that case, the newspaper will probably put two

small "ds" in this column to indicate that the company lost money during the year.

• Unless a company earns money, it cannot have a price/ earnings ratio.

• P/E ratio = closing price of stock / earnings per share

This column presents the stock's volume (or sales) for the day, which is the total number of shares

traded.

Here, the number is given in hundreds, so you must add two zeroes to the end of the number.

This column presents the closing price (or last price) of the stock on this particular day, which means it was the last price at which the stock

traded on that day.

Invest Mints closed at $55.50 per share, but on the previous trading day it had closed at $56.38 per

share.

The net change for today was thus a minus $0.88 ($55.50 – $56.38 = –$0.88).

• Newspaper quotes are from “yesterday’s” paper. (a day old)

• What is it called when a company issues NEW stock (very first time)?

• IPO (Initial Public Offering)

• Why do companies issue new stock?

• To raise more money.

• Investment bankers = Primary Market

• NYSE, NASDAQ, AMEX = Secondary Market

How stock comes to the market. .

• 1) A corporation decides to raise money by issuing shares of stock

• 2) The corporation hires an investment banker • 3) The investment banker sells the stock to

investors in an Initial Public Offering (IPO) • 4) Investors who buy the stock either keep it or

eventually sell it in the secondary market to other investors who want to buy it.

• Equity is another term for ???

• Stock

• Young people can invest heavily in _______ because they have time to make up losses.

• stock

• When investing, be sure to create a portfolio that is d___________

• diversified