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# Stocks: What do these numbers and graphs mean? watch

1. Taken from Apple's stock app, can you define the numbers and what the graphs are please?

The only thing I can take from the numbers in the pictures; I'm on 3, using 3G, it's 16:09 and that I have 85% battery!
2. (Original post by R1C3W1N3)
Taken from Apple's stock app, can you define the numbers and what the graphs are please?

The only thing I can take from the numbers in the pictures; I'm on 3, using 3G, it's 16:09 and that I have 85% battery!
The 435.2 is the price of the share. So one share in Apple would cost you $435.20 The red box 7.46 means that the price share has fallen by$7.46 to $435.20 Then you have some numbers down the bottom. The open price is the price at which the first share was traded for the current trading day. The high is the highest price the share has been during the trading day and the low is the lowest. You have volume, this is how many shares have changed hands during the current trading day. P/E stands for price-earnings ratio. This is a valuation ratio of a company's current share price compared to its per-share earnings. Its calculated using the following formula: Market Value per Share / Earnings per Share (EPS) You have Mkt cap (market cap) this is the total market value of all of a company's outstanding shares. Calculated by: Outstanding share * current market price for one share you have 52w high and low. This is the same concept as the high and low but over 52 weeks. Avg Vol is the numbers of shares traded. and finally yield is the income return on an investment. Moving to the second picture: its the time on the x axis and the value of share on the y axis. You can chose on your phone just about the graph to change the time to days, weeks, months or a year. Hope this helps! 3. (Original post by dan94adibi) The 435.2 is the price of the share. So one share in Apple would cost you$435.20 The red box 7.46 means that the price share has fallen by $7.46 to$435.20

Then you have some numbers down the bottom.

The open price is the price at which the first share was traded for the current trading day.

The high is the highest price the share has been during the trading day and the low is the lowest.

You have volume, this is how many shares have changed hands during the current trading day.

P/E stands for price-earnings ratio. This is a valuation ratio of a company's current share price compared to its per-share earnings.

Its calculated using the following formula:
Market Value per Share / Earnings per Share (EPS)

You have Mkt cap (market cap) this is the total market value of all of a company's outstanding shares.
Calculated by:
Outstanding share * current market price for one share

you have 52w high and low. This is the same concept as the high and low but over 52 weeks.

Avg Vol is the numbers of shares traded.

and finally yield is the income return on an investment.

Moving to the second picture:

its the time on the x axis and the value of share on the y axis.
You can chose on your phone just about the graph to change the time to days, weeks, months or a year.

Hope this helps!
Unbelievable, so simple and informative. Thank you so much - I've ran out of rep!

What do you think has been causing the steady decline from July 2012?
The iPhone 5 was announced then? Or it is down to supply/demand of the shares?

And thank you again! stuff like this makes sense now
http://uk.finance.yahoo.com/echarts?...rce=undefined;
4. (Original post by R1C3W1N3)

What do you think has been causing the steady decline from July 2012?
The iPhone 5 was announced then? Or it is down to supply/demand of the shares?
So many things OP there are lot of related articles, although I believe its mostly because of uncertainty over Apples future product line. Combined with Tim's lack of leadership and ability to fill Steves shoes and then there is the fact that competitors have catched up now and are offering competitive products. Right now in terms of figures apple is still attractive with that respect but investors perceptions are changing on apple and we simply dont know how its future is going to pan out so this is reflected in the stock price. Also apples stock before it reached 700 was increasing exponentially, no firm would be able to keep that level of growth up.
5. (Original post by R1C3W1N3)
Unbelievable, so simple and informative. Thank you so much - I've ran out of rep!

What do you think has been causing the steady decline from July 2012?
The iPhone 5 was announced then? Or it is down to supply/demand of the shares?

And thank you again! stuff like this makes sense now
http://uk.finance.yahoo.com/echarts?...rce=undefined;

Speculation maybe one of the reasons.
With Galaxy S4 coming out soon people predict that SAMSUNG's shares are going to fly high. Therefore they are selling off their Apple shares and buying Samsung shares. According to the demand and Supply law this will mean that prices for Samsung shares will rise while Apple fall.

Although what I've said is only a guess.

There are loads of factors that play a role when it comes to determining the price of a share. For example confidence, business performance and plans for future.

Maybe some Apple investors are feeling that Apple will struggle against the competition of Samsung and therefore not feeling confident hence selling off their shares and causing the supply of Apple's share and therefore a fall in the price of shares.

Overall it does come down to the law of supply and demand.
6. (Original post by rjm101)
So many things OP there are lot of related articles, although I believe its mostly because of uncertainty over Apples future product line. Combined with Tim's lack of leadership and ability to fill Steves shoes and then there is the fact that competitors have catched up now and are offering competitive products. Right now in terms of figures apple is still attractive with that respect but investors perceptions are changing on apple and we simply dont know how its future is going to pan out so this is reflected in the stock price. Also apples stock before it reached 700 was increasing exponentially, no firm would be able to keep that level of growth up.
Speculation maybe one of the reasons.
With Galaxy S4 coming out soon people predict that SAMSUNG's shares are going to fly high. Therefore they are selling off their Apple shares and buying Samsung shares. According to the demand and Supply law this will mean that prices for Samsung shares will rise while Apple fall.

Although what I've said is only a guess.

There are loads of factors that play a role when it comes to determining the share of a price. For example confidence, business performance and plans for future.

Maybe some Apple investors are feeling that Apple will struggle against the competition of Samsung and therefore not feeling confident.

Overall it does come down to the law of supply and demand.
Thank you guys.
I was just speculating, I know that prices can change on a daily basis, CEO leaving or a new law passed by the government all have their affects on the price, (Demand > Supply highER; increasing strock price and Supply > Demand cheaper; decreasing price?
I guess the law is quite simple but the reasoning (as you both have mention) is what's important, why is the stock falling and should I sell my shares etc?

Wow, I knew this was incredibly complex, but it's amazingly interesting to learn! Thank you I was clueless before you guys posted!
7. (Original post by R1C3W1N3)
Thank you guys.
I was just speculating, I know that prices can change on a daily basis, CEO leaving or a new law passed by the government all have their affects on the price, (Demand > Supply highER; increasing strock price and Supply > Demand cheaper; decreasing price?
I guess the law is quite simple but the reasoning (as you both have mention) is what's important, why is the stock falling and should I sell my shares etc?

Wow, I knew this was incredibly complex, but it's amazingly interesting to learn! Thank you I was clueless before you guys posted!
Yes it gets very interesting. Of course when we talk about supply and demand we will be talking about price elasticities and of course distinguishing between short run and long run. How in short run prices are likely to get affected by speculations and in long run by fundamentals such as the companies performance.
Yes it gets very interesting. Of course when we talk about supply and demand we will be talking about price elasticities and of course distinguishing between short run and long run. How in short run prices are likely to get affected by speculations and in long run by fundamentals such as the companies performance.
409.2B is the market cap, dividing this by 427.72 will give us the number of outstanding shares?

(Sorry, where is this figure, I tried the calculation)

This will give us the number of shares, and from that we can work out how much stake each share has?

Lets say I bought one share for $400, and this time next year the share price is$700 dollars. If I sold it back I make $300... is this the only money "made" while trading stokes? With my stake in the business, (I think it's roughly) 0.000008% do I receive 0.000008% of the profits Apple makes while I own the shares? And this is quite a weird question, I know that market forces affect the stock prices daily... lets say Apple announce they wont release any new iPhones, pods,pads etc this year. People will lose confidence; they will want to sell their shares (I get this part) And I know from the whole supply/demand law/theory that due to greater supply the stock price will fall. But "who" actually reduces/changes the stock price? Is it changed by the people who first evaluated the business or people working at the stock exchanges around the world? 9. (Original post by R1C3W1N3) 409.2B is the market cap, dividing this by 427.72 will give us the number of outstanding shares? (Sorry, where is this figure, I tried the calculation) This will give us the number of shares, and from that we can work out how much stake each share has? Lets say I bought one share for$400, and this time next year the share price is $700 dollars. If I sold it back I make$300... is this the only money "made" while trading stokes?

With my stake in the business, (I think it's roughly) 0.000008% do I receive 0.000008% of the profits Apple makes while I own the shares?

And this is quite a weird question, I know that market forces affect the stock prices daily... lets say Apple announce they wont release any new iPhones, pods,pads etc this year. People will lose confidence; they will want to sell their shares (I get this part) And I know from the whole supply/demand law/theory that due to greater supply the stock price will fall.

But "who" actually reduces/changes the stock price?

Is it changed by the people who first evaluated the business or people working at the stock exchanges around the world?

So if let X represent the number of shares.
The formula says that:

Outstanding shares * Price of one share = Market Cap.

In this case let outstanding share = x

This is the number of shares apple has issued.

No, remember that shareholders become the owner of the business.
When you buy a share you become the owner. The more shares you have the more power you have with in the company.

Shareholders then get together in an annual general meeting (AGM) and they discuss about the business.
These shareholders (owners) appoint directors to run the company for them.
Then the directors appoint a manager to run the business on a day to day basis for the shareholders.

It is also good to know that there are different types of shares. Ordinary shareholders and preference shareholders.

I'll keep it simple and assume that the company only has ordinary shareholders.
These shareholders will receive dividends (an award for taking risk and investing). Dividends are usually paid out twice a year. Usually one half way through the year and the next one at the start of the next financial year.

BUT dividends are only paid if the business has profit. If not then they'll receive nothing.

ALSO something the business makes profit but they don't pay out dividend maybe they want to keep some reserves and invest to expand the business or for other reasons.

It is important to know that no one sets or changes these prices. Its just the interpretation of people assume the stock will do in the future.

And to answer your final question, firms go public in an event called initial public offering. The company would pay an investment bank to use some complex formulas to determine how many shares will be provided to the public and at what price. The bank uses the value of the company. i.e how much the business is worth to get this result. The more assets you have the more your business is worth.
10. (Using the app, think it's working normally)

For the FTSE 100, the market capitalisation for all 100 firms is added up, this is the figure shown on the tickers and graphs?

I think it was market cap on the y axis and time on the x

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