A stock quote in the financial market refers to the price at which a security is trading or has recently been traded. That is, the stock quotes are the latest prices at which the shares are bought or sold and the quantities associated with them. It is also called an asset’s quoted price. For example, the highest bid, lowest ask, and the most recent transaction price can be listed in a stock quote. There are basically two types of stock quoting-real-time and delayed. A delayed quote is free of cost in the US. But it reflects the market position 15-20 minutes ago. The range of the last trade or the quantity associated with a bid price is often reported by a stock quote. It is also known as a quotation. In trade, a price series for various quantities may be quoted. From here, we learn about the quantity discount, i.e., quote of a lower unit price for a large amount of quantity.
The most anxious people for the bid and ask quotes are the potential investors or sellers of the stock of a company. This is due to the fact that they are the ones who reflect the prices at which the stock can be bought or sold.
The official timings of the US stock market to remain open for trade are 9:30 AM to 4:00 PM EST, Monday to Friday. The price of the stock at 9:30 AM on an open trading day is known as open price. The trade between the close and open hours is called after hours (i.e., from 4:00 PM to 6:30 PM EST) and pre-market (8:00 AM to 9:30 AM EST) trading. The open price is often affected by the trading during these hours.
An investor must be aware of the common stock quoting terms that are mentioned hereunder:
Prior day’s close: It is the price of a stock at the closing time (4:00 PM EST) of the previous trading day.
High: It is the highest price at which the stock has been traded during the last trading day.
Low: It is the lowest price at which the stock has been traded during the last trading day.
Volume: It refers to the quantity of shares of a stock that have been traded during the last trading day. It is helpful in measuring the liquidity of a traded stock.
Average volume: It refers to the calculation of volume over an extended time period (usually a year).
Capitalization: It refers to the amount in dollars that equals the share price multiplied by the number of outstanding shares.
52-week high: It is the peak price at which the stock has been traded in the last 52 weeks (1 year).
52-week low: It is the lowest price at which the stock has been traded in the last 52 weeks (1 year).
EPS (Earning Per Share): It is calculated by dividing a company’s earnings by the number of outstanding shares.