How To Read A Stock Market Report?

How To Read A Stock Market Report?

May 28, 2020
stock broker

On the previous page Stock Broker described how to use a stock symbol to find a stock market report. Now it is time to take a look at the report itself. The report contains loads of detail and we cannot go through all of it, so Stock Broker will bring out the most important details and we will get to know what do they mean.

The first things to look at the report are selling and buying prices of a share. You would need them both to calculate out your revenue and cost. In other words how much money you would gain from selling your shares and how much money you would need to pay to buy a share. Different sites are using sometimes different words to describe them, so lets take a look at Advfn.com page. It is using word “Bid” (to sell) and the price is 1.6025 pounds (one pound and 60 pennies) per share and the “Offer” means “to buy” and the price is 1.6035 pounds per one share as you can see on the following picture.

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Site Yahoo Financial is using the same word for selling (Bid) but for buying there is word “Ask“. Still we do think it should not be so complicated to find out what are the meanings on different pages because the words are lightly different.

Also you should note that the prices are different for selling and buying and this is the way how stock market people making their money. The difference between selling and buying can be quite big for various stock symbols. Stock Broker recommends STRONGLY to read very carefully your share selling and buying prices before buying anything. The big difference will reduce your profit and it makes more difficult to sell it quickly when time is ready. In the current example the difference is 10 pennies and this would not classify as a big difference. There are shares who’s difference is about 2 or 4 pennies and in that case it is too high. For example when you are buying 1000 VOD shares with rate 160.35 then it is costing 1603.50 pounds and you would like to sell it straight away you would get back 1602.50 pounds. You lost 1 pound without taking in account additional trading fees applied by all trading platforms and this case the selling and buying difference is quite small because the amount of money was less than 2000 pounds. We do recommend deal with 5000 pound minimum per share to make your profit grow faster and of course there is always higher risk involved since the money amount is higher.

The next report details are “High” and “Low“, they are basically the day highest and lowest trading prices. The “Volume” shows the stock amount traded on this day and the bigger volume amount can explain the price raised and drops sometimes.

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On the following line on the report (see the picture above) you can find some financial information about the company. This information is not so important for a day trading, but it does help you to make decision about the company choosing and if it is worth to buy its shares at all. You can find information about the company “Sector” type. The current “Turnover” 46 million and the “Profit” is almost 7 million. About “EPS” and “PE ratio” numbers we will need to go more deep in the next chapters. The cell “Mkt Cap” displays the current market capital value.

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The bottom line describes the share. The “Type” is “OT” – there are only a few stock types and Stock Broker will come back to it later. The “Size” describes normal market size and this is a range of stocks you can buy. Also there is a cell with the last day trading stock “Price“, trading time – “Tr.Time” and the stock currency – “Units“.

P.S. You may some times see different stock prices for the same share on two different platforms. The reason is in timing – one of the sites has prices with delay.  All stock market prices for the same market are coming from the same source and there can’t be differences except in timing.

Next: How To Start Stock Trading

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