What is a Stock Market Quote?
Stock market is the place where traders trade on the stock. A trader trades on various stock exchange markets. It is very important to select the right stock to trade. To trade, one needs to understand the certain basic terminology of the trades. One of the most important terminologies to be used is Stock Quote.
A stock quote provides all details of stock and any trader or should know the terms and symbols that are used in the stock market. Analyzing a stock is a very interesting thing. One can see various terms like Scrip, Price, Market Cap, Open, High, Low, Close and traded quantity, key ratios such as P/E ratio and EPS etc. under share market quotes. Let’s understand each of these terms:
- Scrip: A Scrip is a temporary certificate, which basically represents a portion of share or stock, often issued after a stock split or stock spin.
- Price: This shows exactly the market price of the traded stock.
- Market Cap: Market cap is defined as the total market capitalization of the firm. It can be calculated by multiplying the price of a stock by its total number of outstanding shares.
- Open: It is defined as the starting period of trading on securities exchanged or organized over the counter.
- Close: It is defined as the final price at which security is traded on a given trading day.
- P/E Ratio: It is defined as the ratio of Price of the stock and Earning per share. For Instance, If the price of a stock is 20 and the earnings of the stock is 5. Then the P/E ratio is calculated as 4.
- EPS (Earning Per Share ) : It is defined as the ratio of Company’s Total earning and Total number of outstanding shares.
- Face Value: It is the nominal value shown on the face of a security certificate including the currency.
- 52 Week High: It shows the highest price at which a stock has traded highest during 52 weeks.
- 52 Week Low: It is the lowest price at which a stock has traded lowest during 52 weeks.
Traded Volume: The number of shares or traded in a security or an entire market during a given period. It helps an investor identify momentum in a stock to confirm a trend. It mainly gives an idea about price action of the security, whether he/she should buy or sell the security.
*Disclaimer: investment in securities market are subject to market risks, read all the related documents carefully before investing