Harry Wong 302857273 Econ 101 Chapter 20c. 20.c. How To Read Stock Tables Stock tables like the one shown in Figure 20C.1 can be found in almost all newspapers and will have similar information on the companies. Stock tables show a few but important facts about a company that tell a lot to investors. Figure 20C.1 YTD 52 WEEK 52 WEEK % CHG HI LO STOCK (SYM) -25.5 17.65 7.52 ABC Co ABC -26.3 29.75 16.39 End Engy ENE 52.3 36.9 19.44 Loan Co LOAN -18.2 34.81 18.93 Stonevsion STN 5.1 16.5 12.07 XYZ Co XYZ DIV 0.48 YLD % … … … … 3.4 PE dd 40 39 17 14 VOL 100s 201 2355 99 712 130 CLOSE 7.45 18.8 36.5 23.21 14.03 1. Year-to- Date Change: Price change since January 1 or initial offering of stock. 2. 52 week high: The highest price that the stock has traded at over the previous 52 weeks or a year. The 52 weeks are adjusted daily to cover the proceeding 52-week period. 3. 52 week low: The lowest price this stock has traded at over the previous 52 weeks or a year. The 52 weeks are adjusted daily to cover the proceeding 52-week period. 4. Stock: This is the name of the company of the stock. Occasionally symbols are written after the name. Common ones include pf, which means the stock is preferred. There is always a legend to explain what each symbol means. 5. Symbol: This is the ticker symbol used to identify stocks. Ticker tapes on television or the Internet will often show the ticker symbol instead of the whole name. 6. Dividends per share: Dividends are distributions that a company gives to its shareholders. Distributions may be in cash, additional stock, stock rights, or property. This column shows whether a company has given out a dividend this year. If there is a number here, it is the annual dividend payment per share of stock. If there is nothing in the spot the company has not offered any dividends. 7. Dividend Yield: Dividend Yield is the percentage return on the dividend. It can be calculated as follows: Annual Dividends per share/ Price per share NET CHG -1.35 0.26 1.03 -0.99 -0.36 Harry Wong 302857273 Econ 101 Chapter 20c. 8. PE or Price Earnings Ratio: This ratio tells how many times the stock price is selling for. PE ratio: Share price divided by earnings per share from the last 4 quarters. Earnings per share: this tells how much each share of common stock would receive in dividends were we to distribute a dividend equal to the company’s net income. 9. Volume: This shows how many shares of this stock were traded this day in the hundreds. 10. Close: The close is the closing price of the stock for the day. The listing will be in bold if the Price changes more than 5 % from a previous day. 11. Net Change: This is the change in price from the previous day’s closing price. Quiz 1. What price did End Energy close at yesterday? Answer: 18.54 End Energy closed at 18.8 today and the net change was 0.26, therefore the price it closed at yesterday must be 18.8-0.26= 18.54 2. What price was Loan Co at the very beginning of the year? Answer: 23.97 We know the current price is 36.5 and that since the beginning of the year it has risen 52.3%. Therefore, the calculation is as follows: Unknown Price at Beginning of year x % Change = Current price Unknown Price at Beginning of year x 152.3% = 36.5 3. Why is ABC Co in bold? Answer: Stock listings are in bold if the price of the stock changes more than 5% (positive or negative) from a previous day. 4. If you owned 20 shares in XYZ Co, how much would you earn assuming they paid you in cash? Answer: XYZ Company is paying dividends in amounts of 48 cents per share. If you have 20 shares then you will receive $9.60 in dividends. (20 x .48= 9.6) 5. What is the Earnings per share of Stone vision? Answer: 1.36= EPS Harry Wong 302857273 Econ 101 Chapter 20c. Since we know the PE ratio of Stone Vision is 17 and stock price is 23.21 then we can derive EPS with the formula PE=Market Price/ EPS Calculation: 17=23.21/EPS 6. What is the dividend yield for XYZ Co? Answer: .034 or 34% The equation for dividend yield is Dividend Price/ Stock price, therefore Since the listing shows dividend price is .48 and stock price is 14.03 then we know .48/14.03= .034 Or alternatively we can just look at the YLD % column for 3.4%. 7. What is the annual dividend per share for XYZ Co? Answer: 0.48; Look at the column that gives annual dividend per share, it says 0.48. 8. What is the market price of End Energy, given EPS 0.47? Answer: $18.8 Recall that the formula for calculating PE ratios is Market Price /EPS, so 40= Market Price/ 0.47 gives a market price of 18.8. 9. How much in dividends were given per share if the dividends yield for XYZ Co is 3.4 and the price of the stock is 14.03? Answer: 0.48 Since Dividends Yield = Dividend Per share/ Stock Price we know that 3.4 = Dividends per share/14.03; solve for Dividends per share 10. Which stock has had the most gains this year percentage wise? Answer: Loan Co since its YTD % Change is greatest at 52.3 % 11. If on Jan 1, you wanted stock but you wanted to buy the stock with the lowest price, which one of the Stocks would you choose? Answer: ABC Co. @ $9.35 Compute the prices of the stocks on Jan 1: ABC Co= 7.45 x 125.5%=9.35 End Energy=18.8 x 126.3%= 23.74 Loan Co=36.5/152.3%=23.97 Stone Vision= 23.21 x 118.2%=27.43 XYZ Co= 14.03/105.14%=13.34