Module 3 of 6
Reading Stock Prices
Understand how to read stock quotes, what price changes mean, and key metrics like volume and market cap.
Understanding a Stock Quote
When you look at a stock, you will see several key numbers. Learning to read these is essential for making informed decisions.
Current Price
The current price (or last price) is the most recent price at which the stock was traded. During market hours, this updates in real time.
Price Change & Percentage
Next to the price, you will see the change — both in dollars and as a percentage. Green (positive) means the stock is up from yesterday's close. Red (negative) means it is down.
A stock going from $100 to $102 is a $2 / 2% gain. A stock going from $10 to $12 is also a $2 gain, but a much bigger 20% gain. Always look at the percentage to understand the real magnitude of a move.
Volume
Volume is the total number of shares traded during a given period. High volume means lots of trading activity, which usually indicates strong interest or a big news event.
The number of shares of a stock that have been traded during a specific time period. High volume often signals significant interest.
Market Capitalization
Market cap is the total value of all a company's outstanding shares. It is calculated as: Stock Price × Total Shares Outstanding. Companies are generally categorized as:
•Large Cap: $10B+ (Apple, Microsoft) — Established, stable companies •Mid Cap: $2B–$10B — Growing companies with proven track records •Small Cap: Under $2B — Younger, potentially higher growth but more volatile
The total market value of a company's outstanding shares. Calculated as stock price multiplied by total shares outstanding.
Day Range & 52-Week Range
The day range shows the lowest and highest price the stock traded at today. The 52-week range shows the lowest and highest prices over the past year. These help you understand where the current price sits relative to recent history.
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