Learn the basic Stock Quote terminology by using Money Control App.
Hello readers, we are back with the new exciting article. In this article, you will learn about the basic stock quote terminology. What it’s meaning by using a money control mobile app. We have divided this stock quote article into two series. In this first article, it is related to the information for the traders and the second part will be related to the financials of the company.
Peoples who are interested in the stock market somehow they know about the money control app. They even have an app on their mobile phones but never know how to read stock. For beginners, who wanted to learn and understand the fundamentals of a company, those peoples must know about the stock quote. Also, you must know how to use the money control app.
There are lots of information are available in the money control app which may confuse anybody. To understand and clear the confusion, you must read this article till the end. I will explain the stock quote in two series articles by taking an example of Reliance Industries Limited.
You will see this screen on your mobiles when you open the money control app and search for Reliance in the search bar.
On this screen, you can find the stock quotes like:
- Share price
- Price Change
- Offer Price
- Today’s Low/high
- 52Wk Low/High
- Open Price
- L/U Price Band
1. SHARE PRICE, VOLUME, PRICE CHANGE
At the top, you can find the company name and its share price just below the name. Here, 1472.25 is the share price of Reliance as of 28 May 2020.
The value in green 26.70 (+1.85%) means the price movement of the Reliance share is up today by ₹26.70. In bracket, it shows the price is up by 1.85% from its previous day share price.
Suppose if this value is in red that means the share price movement is in down word side.
Now, the meaning of volume here is the total shares traded in a single day. Trading is to buy or sell shares. Here it means, one crore eighty-five lac nineteen thousand two hundred fifty-two shares has been traded so far in a single day. This volume includes the sum of total shares of intraday trading plus total deliverables.
The chart will show how the share price movement occurs in a single day. Under this chart, they have provided different options like 1D, 5D, 1M, 3M, 6M, and 1Y.
1D means one-day price movement chart
5D means five-day price movement chart
1M means one month price movement chart
3M means three-month price movement chart
6M means six-month price movement chart
1Y means a one-year price movement chart
These charts show how the price of the share moves up or down. The purpose of the chart is to show the low and high price movement in a period.
VWAP stands for a Volume-Weighted Average Price. It is the average of the share price in a day. This volume changes every second on a trading day. VWAP has been calculated as follows:
VWAP = Total traded Value / Volume
Let us understand with an example. Suppose there is accompany OSI with 4 trades.
1st trade = No. of shares X Share price = 10 x 100 = 1000
2nd trade = 15 x 101 = 1515
3rd trade = 20 x 102 = 2040
4th trade = 25 x 103 = 2575
So, total traded value = 1000 + 1515 + 2040 + 2575 = 7130
Volume = 10 + 15 + 20 + 25 = 70
VWAP = 7130 / 70 = 101.857
That means, in 4 trades OSI has the average share price is 101.857.
Similarly, the average share price of Reliance is 1467.49
4. OFFER PRICE
This value indicates that the sellers (who want to sell the shares) are ready to sell their share at a minimum price. In the case of Reliance, the sellers put a minimum selling price ₹1472.25 and the total quantities of selling shares are 7750.
5. TODAY’S LOW/HIGH & 52WK LOW/HIGH
Today’s low/high indicates that the lowest and the highest price of the shares in a trading day. On 28th May 2020, the Reliance share price touches the lowest share value as ₹1449 and touches the highest share value as ₹1479.75
52wk means 52 week which indicates the completion of year. In one year 52 weeks are there. For Reliance, ₹867.43 is the lowest 52 week share price and ₹1602.36 is the highest 52 week share price.
6. PREVIOUS CLOSE AND OPEN PRICE
Prev. close means the previous day closing value of share and the open price is the opening value of the share on trading day. For Reliance, ₹1445.55 share value is the closing value of share on 27th May 2020 while on 28th May 2020, when share market open, the Reliance share value open at ₹1455.00
7. L/U PRICE BAND
Here, L means lower limit or lower circuit and U means upper limit or upper circuit.
L/U price band helps to control the extreme volatility of the stock price. It helps to limit the share value. Different companies have different L/U price bands. There is no. of limits like 2%, 5%, 10%, 20%, and 30%. It means share price can maximum move up and down at these percentages.
Suppose a company OSI has a share price of ₹100, its L/U price band is 10%. It means the lower limit for OSI on a trading day is 90 and the upper limit on a trading day is 110.
OSI will move 90 to 110 ranges only. Whenever OSI will touch either 90 or 110, the L/U price band triggered and its trading will close for the whole day.
Now, on 28th May 2020, Reliance has a lower limit is ₹1301 and the upper limit is ₹1590.10.
For the trading purpose, these stock quotes must know by the traders in the stock market. If you are a new trader in the stock market you must download the money control app and understand these stock quotes. These stock quote help traders to know about the price movement of a company. With this information, sometimes they just book their profit and loss in the share market.
Now, if you have any questions on these stock quotes you can comment in the comment section below. Also, you can suggest a topic on which you wanted to know more information related to the stock market.
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