Chapter 1: The Stock Market

1.2 Stock Market Data

1.2 Stock Market Data

• What is a stock market???• A general term for an

institution through which stocks are bought and sold

• EX: New York Stock Exchange (NYSE)

• EX: National Association of Securities Dealers Automated Quotation System (NASDAQ)

• Stock market transactions are called trades

Categories used in Stock Market International Charts

• Last – price per share of the last trade that was made for a particular stock

• Close (closing price) – the last price at which a stock was traded during a regular’s day trading session. Most stock markets daily session is 9am-4pm EST

• High – the highest price at which one share of a stock was traded on a given day

• Low – the lowest price at which one share of stock was traded on a given day

Categories used in Stock Market International Charts• Volume – the number of shares that was traded in a

given time period• Sometimes listed as sales in 100s. This represents the

number of groups of 100 shares that were traded on a given day

• 52-week high- the highest price at which one share was traded over the last year

• 52-week low – the lowest price at which one share was traded over the last year

• Chg or net change – the change between the previous day’s closing price and the current day’s closing price

• After hours trading – some trades are made after the market closes

Real world example…

• http://finance.yahoo.com/

• Let’s find a corporation and take a look at some of its data…

Example 1• Examine the data for XYZ Corporation

published at the close of two trading days. These categories are used when analyzing data about stock.

Example 1 Continued

• What was the difference between the high and the low prices on May 5th? May 12th?

Example 2• On May 12, what was the actual volume of XYZ

shares posted? Write the volume in thousands.

Example 3

• On May 5, what was the actual volume of XYZ shares posted?

Example 4• At what price did XYZ Corporation close on May 4?

May 11? (remember: positive net change means an increase in the closing price from the previous day’s close)

Example 5• Use the May 4 closing price from Ex 3 and the May

5 opening price to find the difference in prices as a percent increase. Round to the nearest hundredth percent.

Example 6• Use May 11 closing price from Ex 4 and the

May 12 opening price to represent the difference as a percent decrease. Round to the nearest hundredth percent.

Example 7• On May 6, the XYZ Corporation announced a

decrease in earnings. This news caused the price of their stock to drop. It closed at $44.37. Express the net change from May 5 to May 6 as a percent.

Example 8• On May 13, the XYZ Corporation announced another

decrease in earnings. The price of their stock dropped to close at $45.72. Express the net change from May 12 to May 13 as a percent, to the nearest tenth.

1.2 HW

• p.14#2-11all