Yahoo Stock Analysis Flashcards
What is the previous close ?
The “previous close” on a stock refers to the price at which the stock last traded before the current trading session. It represents the closing price of the stock on the previous trading day. This price is used as a reference point for investors and traders to gauge how the stock is performing relative to its recent trading history. It’s often compared to the current trading price to assess whether the stock is up or down since the last trading session.
What does open mean on a stock?
The “open” on a stock refers to the price at which a particular stock begins trading when the stock market opens for the day. This is the first price at which the stock is traded after the market opens, and it serves as the starting point for that day’s trading activity. The opening price can be influenced by a variety of factors, including overnight news, market sentiment, and pre-market trading activity. It’s an important indicator for investors and traders to understand the initial market reaction to new information or events affecting the stock.
What does bid mean on a stock?
The “bid” on a stock refers to the highest price that a buyer is willing to pay for a particular stock at a given moment. It represents the price at which someone is actively trying to purchase shares of the stock. The bid price is important because it helps determine the market value of a stock and can influence its trading activity.
For example, if the current bid for a stock is $50, it means that there is a buyer willing to pay up to $50 per share. The bid price is typically displayed alongside the “ask” price, which is the lowest price at which a seller is willing to sell their shares. The difference between the bid and ask prices is known as the “bid-ask spread,” and it reflects the liquidity and trading activity of the stock.
What is the ask on a stock?
The “ask” on a stock refers to the lowest price at which a seller is willing to sell a particular stock at a given moment. It represents the price at which someone is actively offering to sell shares of the stock. The ask price is crucial because it helps determine the market value of a stock and can influence its trading activity.
For instance, if the current ask for a stock is $52, it means that there is a seller willing to sell shares for at least $52 each. The ask price is typically displayed alongside the “bid” price, which is the highest price a buyer is willing to pay. The difference between the bid and ask prices is known as the “bid-ask spread,” which can provide insights into the liquidity and trading dynamics of the stock.
What is the days range on a stock mean?
The “day’s range” on a stock refers to the range of prices at which a particular stock has traded during a single trading day. It represents the lowest and highest prices at which the stock has been bought or sold within that trading session.
For example, if a stock has a day’s range of $48 to $52, it means that the lowest price at which the stock was traded during the day was $48, and the highest price was $52. The day’s range provides investors and traders with a snapshot of the stock’s volatility and trading activity for that specific trading day. It can help gauge the price movement and volatility of the stock over a short period.
What is a 52 week range on a stock ?
The “52-week range” on a stock refers to the lowest and highest prices at which a particular stock has traded over the past 52 weeks (one year). It provides investors and traders with an idea of the stock’s price volatility and trading activity over a longer period, beyond just the current trading day.
For example, if a stock has a 52-week range of $40 to $60, it means that the lowest price the stock has reached in the past year was $40, and the highest price was $60. This range can help investors assess the stock’s performance relative to its past trading history and determine whether the current price is near the high or low end of its 52-week range. It can also provide insights into the stock’s potential support and resistance levels based on past price movements.
What is the volume on a stock?
The “volume” on a stock refers to the total number of shares that have been traded during a given period, typically within a trading day. It represents the level of activity and interest in a particular stock.
For example, if a stock has a trading volume of 500,000 shares for the day, it means that 500,000 shares of that stock have been bought and sold throughout the trading day.
Volume is an important indicator for investors and traders as it can provide insights into the liquidity, momentum, and strength of a stock’s price movement. Higher trading volumes often indicate increased interest and activity in the stock, while lower volumes may suggest decreased interest or quieter trading activity.
What is the average volume on a stock ?
The “average volume” on a stock refers to the average number of shares that have been traded over a specified period, usually calculated over 30 days or 90 days. It provides investors and traders with a benchmark to gauge the typical trading activity and interest in a particular stock over that time frame.
For example, if a stock has an average volume of 1 million shares over the past 30 days, it means that on average, 1 million shares of that stock have been traded each day over that period.
Average volume can be used to compare current trading volume to its historical average. A trading volume significantly higher than the average might indicate increased interest or activity in the stock, potentially signaling a significant news event or price movement. Conversely, a trading volume significantly lower than the average might suggest decreased interest or quieter trading activity.
What is market cap on a stock?
The “market capitalization,” or “market cap,” of a stock refers to the total value of all outstanding shares of a company’s stock. It is calculated by multiplying the current stock price by the total number of outstanding shares.
For example, if a company’s stock is trading at $50 per share and there are 1 million outstanding shares, the market cap would be $50 million ($50 x 1,000,000 shares).
Market cap provides a measure of a company’s size and valuation in the stock market. It categorizes companies into different size classes:
- Large Cap: Typically refers to companies with a market cap of $10 billion or more.
- Mid Cap: Companies with a market cap between $2 billion and $10 billion.
- Small Cap: Companies with a market cap between $300 million and $2 billion.
- Micro Cap: Companies with a market cap between $50 million and $300 million.
- Nano Cap: Companies with a market cap below $50 million.
Market cap is an important metric for investors and analysts as it can influence investment decisions and portfolio strategies. It is also used to compare companies within the same industry or sector and to assess a company’s growth potential, risk profile, and investment attractiveness.
What does beta mean in the stock market?
In the stock market, “beta” is a measure that indicates the volatility or systematic risk of a stock or portfolio in comparison to the overall market. It measures the sensitivity of a stock’s returns to changes in the market returns.
Here’s how it works:
- Beta = 1: If a stock has a beta of 1, it means the stock tends to move in line with the market. If the market goes up by 1%, the stock, on average, is expected to go up by 1% as well.
- Beta > 1: A beta greater than 1 indicates that the stock is more volatile than the market. For example, a stock with a beta of 1.5 is expected to be 50% more volatile than the market. If the market goes up by 1%, this stock would be expected to go up by 1.5%.
- Beta < 1: A beta less than 1 suggests that the stock is less volatile than the market. For instance, a stock with a beta of 0.7 would be expected to move only 70% as much as the market. If the market goes up by 1%, this stock would go up by 0.7%.
- Beta = 0: If a stock has a beta of 0, it means its returns are not correlated with the market returns. This is rare but could imply that the stock’s performance is independent of market movements.
Beta is used by investors and analysts to assess the risk of a stock or portfolio relative to the broader market. A higher beta generally implies higher risk, while a lower beta suggests lower risk. However, it’s essential to note that beta doesn’t capture all types of risk, such as company-specific or non-systematic risks.
What is a PE Ratio on a stock?
The P/E ratio, or Price-to-Earnings ratio, on a stock is a valuation metric that compares a company’s current stock price to its earnings per share (EPS). It’s calculated by dividing the current market price of the stock by its EPS.
Here’s how to interpret the P/E ratio:
- High P/E: A high P/E ratio generally suggests that the stock’s price is high relative to its earnings. This could indicate that the stock is overvalued, or it might suggest that investors expect higher earnings growth in the future.
- Low P/E: A low P/E ratio typically indicates that the stock’s price is low relative to its earnings, which could mean that the stock is undervalued. However, it might also suggest that investors have lower growth
What does Earnings Per Share mean on a stock ?
“Earnings Per Share” (EPS) on a stock is a financial metric that represents the portion of a company’s profit allocated to each outstanding share of common stock. It’s calculated by dividing the company’s net earnings by the total number of outstanding shares.
EPS provides insight into a company’s profitability on a per-share basis, making it easier for investors to evaluate the company’s performance and profitability relative to its share count.
- Higher EPS: A higher EPS generally indicates greater profitability for the company on a per-share basis. It can be a positive sign for investors as it suggests that the company is generating more profit relative to its share count.
- Lower or Negative EPS: A lower or negative EPS suggests lower profitability or potential losses for the company. This could be a red flag for investors as it indicates that the company may not be generating sufficient earnings to cover its expenses or provide returns to shareholders.
EPS is a key financial metric used by investors, analysts, and financial institutions to assess a company’s financial health, profitability, and growth prospects. It’s often used in conjunction with other financial ratios and metrics to make informed investment decisions and compare companies within the same industry or sector.
What is a dividend yield on a stock ?
The “dividend yield” on a stock is a financial ratio that indicates the annual dividend income earned by an investor relative to the price of the stock. It’s expressed as a percentage and is calculated by dividing the annual dividend per share by the stock’s current market price, then multiplying by 100 to get a percentage.
For example, if a stock pays an annual dividend of $2 per share and its current market price is $50 per share, the dividend yield would be:
A higher dividend yield indicates that the stock is paying a higher dividend relative to its price, making it more attractive for investors seeking income from their investments.
Here’s how to interpret the dividend yield:
- High Dividend Yield: A high dividend yield may be attractive to income-oriented investors as it provides a higher annual income relative to the investment amount. However, a very high dividend yield could also signal that the stock price has declined, or that the dividend payout might not be sustainable.
- Low Dividend Yield: A low dividend yield may indicate that the stock is not paying a significant dividend relative to its price. This could be because the company reinvests its earnings back into the business for growth rather than paying out dividends.
It’s important for investors to consider not only the dividend yield but also other factors such as the company’s financial health, dividend history, and growth prospects when evaluating dividend-paying stocks.
What is the dividend date on a stock ?
The dividend date of a stock refers to the specific dates on which a company’s dividend payments are made to its shareholders. There are several key dividend dates that investors should be aware of:
- Declaration Date: This is the date on which the company’s board of directors announces and approves the upcoming dividend payment. On this date, the company specifies the amount of the dividend, the record date, and the payment date.
- Ex-Dividend Date: The ex-dividend date is crucial for investors who want to receive the upcoming dividend payment. To be eligible for the dividend, an investor must own the stock before the ex-dividend date. If you purchase the stock on or after the ex-dividend date, you will not receive the dividend.
- Record Date: Also known as the “date of record,” this is the date on which the company determines the shareholders who are eligible to receive the dividend. Shareholders who own the stock on the record date will receive the dividend, regardless of when they bought the shares.
- Payment Date: This is the date on which the dividend payments are actually made to eligible shareholders. It’s when the funds are transferred to the shareholders’ accounts or when dividend checks are mailed out.
It’s important for investors to pay attention to these dividend dates to ensure they are eligible to receive dividend payments and to plan their investment strategies accordingly. Missing the ex-dividend date means missing out on the upcoming dividend payment for that stock.
What is the 1 year Target of a stock ?
The “one-year target” or “price target” of a stock is an estimate provided by analysts or investment research firms about where they expect the stock’s price to be in the next 12 months. This target price is based on various factors, including the company’s fundamentals, industry trends, market conditions, and the analyst’s evaluation of the stock’s potential upside or downside.
Here’s how to interpret the one-year target:
- Above Current Price: If the one-year target is higher than the stock’s current price, it suggests that analysts expect the stock to increase in value over the next year. This could be an indication of the stock’s growth potential or positive outlook.
- Below Current Price: If the one-year target is lower than the stock’s current price, it suggests that analysts expect the stock to decrease in value over the next year. This could be due to concerns about the company’s performance, industry challenges, or other factors affecting the stock.
It’s important to note that the one-year target is not a guarantee of future performance and should not be the sole basis for investment decisions. Investors should consider this target price along with other information and factors when evaluating a stock and making investment decisions. Additionally, these price targets can change over time as analysts update their forecasts based on new information and developments related to the company and the market.
