Tuesday, 20 July 2010

Some terms related to stock

Last Trade - This is the price at which the most recent trade took place.

Trade time- This refers to the time of the last trade of the stock. The date is reported place of the time if the stock has not traded in the current.

Change - This is the difference between the last traded price and the previous trading day's closing price.

 Prev Close - This is the last traded price recorded when the market closed on the previous day.

Open - This is the opening price for the current days's trading.

Bid - This is the current bid price for the stock - the price at which one share will be bought by a that particular stock.

Eg. if Bid = 34.56 X 14500
current bid size = 14500 = number of shares a buyer is willing to purchase at the quoted bid price of USD 34.56

Ask - This is the current ask / offer or the price at which one share will be sold by a seller of that stock.
Eg. if Ask = 34.57 X 12300
ask size = No. of shares the seller is wishing to sell
at quoted ask price of 34.57

1year Target Estimate (1y target est.) - The 1 year target estimate represents the median target price as forecast by analysts covering the stock. 

Day's range - This refers to the lowest traded bid price and highest traded ask price for the stock during the current day's trading.

52wk range - This the stock's lowest bid price and highest ask price during the past year's trading.

Volume - This is the total no. of shares traded during the current trading day.

Avg vol (3m) - This is the monthly average of the cumulative trading volume during the last three months divided by 22 days.


Market cap - This the stock's market capitalization(shown in the currency), calculated by multiplying the last traded price price by the current number of shares outstanding.

P/E(ttm)(Price Earning ratio) - Calculated by dividing the current share price by earnings per share(EPS).
ttm = trailing twelve months
EPS(ttm) (Earning per share) - This is stated for the most recent 12 months. This is the portion of a company's profit or income that is allocated to each outstanding share. It is calculated by dividing net income from continuing operations (after tax payment and the payment of preffered stock holders dividend.)

Div & yield -already learned a bit about it.

Example
Suppose there is XY company,

Last trade = 23.45 USD

Trade time = 12.22 AM ET
Change
Prev close = 23.02 USD
Open = 23.05
 Bid   =  23.45 X 7000
Ask =
1y target Est. = 36.16 USD

Day's range =23.04 - 23.67
52wk range = 22.87 - 35.50
volume = 13,340,445
Avg volume(3m) - 66,197,500
Market cap = 223.01B
P/E (ttm) =
EPS(ttm) = 1.72
Div and yield =

So some points are missing. We have to calculate these.

What is change?
change = difference is last traded price and prev day closing price. So change = .43 USD positive.

What is P/E ratio?
We know that P/E ratio = current share price / EPS = 23.45 / 1.72 = 13.63

What is dividend yield assuming that company's forward dividend rate is .44 per share ?
Dividend yield = dividend per share / current stock price
                      = .44/23.45 = 4.26%

1 comment:

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