Stock metrics are numerical measures that can give insight to the value, volatility, popularity, etc. of a stock. There are many different metrics and this page is dedicated to breaking down the metrics so that they can be easily understood.
Simple Metrics
OpenThe open is the price of the first trade that occurs after the stock market opens each day. This metric is the starting line for each day and is used as the point of comparison for later prices throughout the day to see if the stock is trending up or down for that day. The opening price can be compared to the previous closing price. If there is a significant difference between the opening an previous closing price, this can suggest that something important has occurred while the market was closed.
highThe high is the highest price a stock trades on a given day. The high can be compared to the open, close, and low value to determine how volatile a stock is on a given day. If there are large differences then the stock was very volatile that day. If there are small differences, then the stock was not very volatile on that day. It can also be important to compare how similar the closing price and the high are. If the close and high are very close, it could suggest that an upward trend might continue the next day and that a stable price has not yet been reached.
volumeVolume is a metric that indicates the number of shares traded on a given day. A stock with a high trading volume indicates that it is actively traded, whereas a stock with a low trading volume indicates it is not actively traded. Traders will often prefer stocks with high trading volume since it means that it is a more liquid investment, meaning it will be easier and faster to sell when the trader decides they want to close an investment.
|
CloseThe close is the last price a stock trades before the market closes each day. The closing price can be compared to the opening price to determine if the stock went up or down on a given day.
lowThe low is the lowest price a stock trades on a given day. The low can be compared to the high, close, and open to determine the volatility of a stock on a given day similar to the high. As well it can be compared to the close just as the high to determine if a downtrend might continue the following trading day.
Market capMarket cap is the total value of a publicly traded company computed by multiplying the current share price by the total number of shares of a company. Generally, companies with a larger market cap are considered to be less volatile since the stock price is backed by more money. Although, that is not always the case in scenarios where either very few shares are traded each day or the company's business model is speculative or other reasons not discussed here.
|