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