A stock chart, as you might find online or in the pages of a newspaper, is a bewildering alphabet soup of letters representing company names, stock performance and financial abbreviations. It's useful to know what the major abbreviations stand for and to become familiar with a few resources for interpreting unfamiliar financial codes.
Stock charts can take the form of detailed tables printed in the financial pages of many newspapers. The charts typically show the performance for the day of hundreds of individual stocks, along with information about longer-term performance. A newspaper stock chart may also include assorted financial statistics about individual companies.
Stock charts presented as graphs typically chart the performance over time of an individual stock, a group of stocks or a stock index such as the Standard and Poors 500. Graphical charts can show performance for a single day, known as an intraday chart, or can display a longer timeline of stock performance, spanning weeks, months or years.
A major entry on stock charts is a group of letters representing an individual company or a stock index. For example, GOOG is the stock symbol for Google, a company, and DJIA is the symbol for the Dow Jones Industrial Average, a stock index. Many investing websites, such as Yahoo! Finance, provide online lookup searches to match a company name with its stock symbol.
Stock charts employ hundreds of letter combinations to identify companies and indexes as well as financial terms. For example, Vol represents the volume of shares trades, P/E is used for price-earnings ratio and 52Wk means the high or low value of the stock in the past 52 weeks. Other common abbreviations are Div for dividend, EPS for earnings per share, NYSE for New York Stock Exchange, AmEx for American Stock Exchange and OTC for over-the-counter trades.
There are numerous online glossaries that are useful for finding the meaning of unknown abbreviations on stock charts. InvestorWords and Forbes Financial Glossary are two well-known resources.
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