When looking at the standard stock quote, you’re getting a broad overview on the company. It is a display of what the company looks like, and gives a good, but very basic, summary. This information is usually ample for technical analysis, but is usually not enough to make an investment decision for fundamental analysis. Further in depth research may be necessary.
The Holy Grail, so to speak. The line on the chart reflects the closing price at certain times. The sole purpose behind finding the right industry, doing the research, and finding a good company is so that we can see the price go up after we go long on the stock. In theory, this is meant to reflect everything about the company and its value in the market. If a company is worth more, theoretically investors will flock towards the stock causing the price to rise.
The difference between the high and low prices within a 52 week period.
The price during the market open. A useful indicator when combined with closing price.
The number of shares of said stock (or exchange) traded in the day. Generally, many of the stocks on the TSX-V have lower volume when compared to larger exchanges such as the TSX and the NYSE. This represents new challenges, as a large buy or sell order can have a significant impact on the price and it will not be as easy to sell your position.
Other indicators found when you search for company tickers
Market Cap: The amount of shares issued (an important concept that we will talk about more later) multiplied by the price. This is how much the company is worth. A larger market cap generally signifies that the market believes the stock is worth more.
P/E: Price Earnings ratio. This is the price of the stock divided by the earnings per share. Many companies are still in expansion mode, and therefore do not yet have any earnings. This doesn’t necessarily make them worse, on the contrary they can be on the verge of a significant milestone, which is when the price can skyrocket.
EPS: Earnings Per-Share. Again, only relevant if the company is already cash flow positive and has started earning revenue from its business. Simply put, it is a per share measure of the earnings.
Shares: Shares outstanding. Many exploration based companies raise capital by issuing more shares and options or warrants. The more shares there are outstanding, the greater the “dilution”.
Beta: A measure of risk. The market has a Beta of 1. The Beta of the stock is relative to the market, so any number higher than 1 indicates the stock is more volatile than the market, and lower indicates less volatility.
