| While most folks today trust mutual | | | | with a little practice. |
| funds and their professional managers | | | | Ticker symbol is listed first. This is |
| with their investments, it's still | | | | the abbreviated symbol that the stock |
| important to understand the basics of | | | | market uses to identify your company. |
| the stock market. Although investing in | | | | For example, GE is General Electric, WMT |
| individual stocks may not be right for | | | | is Walmart. Once you select a company, |
| everyone, a basic understanding of the | | | | you'll need to know it's shorthand name |
| stock market is essential to | | | | to track its progress. |
| understanding the workings of our | | | | Second, the company's name may be |
| economy and business sector. | | | | listed. Some tables omit the name to |
| A stock is a portion of ownership in a | | | | save space, others list it to make |
| company. Commonly referred to as a | | | | tracking stocks easier. |
| share, it is a small percentage of the | | | | The third item is the number of sales in |
| total ownership pool for the | | | | the last trading day. This is listed in |
| corporation. Shareholders are stock | | | | the 100,000's, so 256 means 256,000 |
| owners, or people who have an ownership | | | | shares were bought and sold on the last |
| interest in the corporation. Today, | | | | day that the market was open. |
| shares are usually tracked | | | | Next are the high and low price, in that |
| electronically, but in previous decades | | | | order. The high price is the highest per |
| shareholders would actually receive a | | | | share price that the stock sold for on |
| certificate stating their ownership. | | | | the previous trading day. The low price |
| Why own stocks? First, you are sharing | | | | is the lowest price for that day. Since |
| in the company's profits. When a | | | | the price of the shares moves all day |
| corporation shows a profit, they will | | | | long, this is a good reference to see |
| sometimes distribute these profits to | | | | how much the stock is changing in a day. |
| each shareholder, based on how much | | | | Next, the closing price is listed. This |
| stock they own. This distribution is | | | | is the last price that the stock traded |
| called a dividend. Company's can elect | | | | for as the market closed. This will also |
| to pay out their profits or reinvest | | | | be the beginning price for the next |
| them in the company, but as a | | | | trading day. |
| shareholder, each time a payout is made | | | | After the closing price, the table will |
| you will receive your proportionate | | | | list the change, or the amount that the |
| share. | | | | stock changed when you compare |
| Also, the value of your stock will rise | | | | yesterday's closing price with the |
| and fall based on the company's | | | | closing price for the day before. This |
| perceived value in the stock market. If | | | | will be listed as a positive number (the |
| you buy a share at $10.00 and it rises | | | | stock went up) or a negative number (the |
| to $11.00 a share, you've made a dollar | | | | stock sold for less yesterday than the |
| for each share you own, and subsequently | | | | day before). |
| sell. However, with this opportunity | | | | Stock tables are found in many places, |
| comes risk as well. If the share price | | | | but most people check their daily paper |
| falls and you sell, you'll lose money. | | | | or the Wall Street Journal. There are |
| The more volatile the stock, the more | | | | many internet sites that track stocks as |
| opportunity for risk or profit. | | | | well. |
| Most shareholders track their stocks | | | | Of course, you'll have to select a |
| using the stock table. These appear | | | | stock. Choose carefully or consult a |
| confusing and difficult to read, but | | | | professional, and good luck! |
| they are actually easy to understand | | | | |