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Understanding the stock market report in daily newspapers

Updated on September 29, 2010

The national dailies contain vital information that would help an investor keep track of his investment. A lot of people don’t know how to read the information that is contained therein. The essence of this article is to give a guide to understanding the information about the stock market contained in the national dailies.

Sector: This refers to a list of the various sectors of the economy traded on a particular day. It is divided into two: First, tier security which deals with those companies that are fully listed in the market having met all listing requirements and the second tier security which deals with smaller companies that have not met the listing requirements into the major market.

Company Name: This shows the names of companies that were dealt on, under the various sectors discussed above.

Number of Deals: This tells us the number of times the shares of a particular company was traded on the floor of the Exchange Market for a particular day.

Quotation: This shows the closing price of shares of a particular company on a particular day. Within this price though, lie various other prices at which the same company was traded in the day in question.

Quality Traded: This tells us the total quantity of shares actually sold in the stated number of deals discussed above. For a good stock, both the quantity and number of deals will be both high.

Value of Shares: This tells us how much was realized by selling the quantity above at the quotation price.

Price/Earning Ratio (P/E Ratio): This tells us whether a particular stock was overpriced or under priced. If this is very high, it means the shares were overpriced and vice versa.

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