How to Read a Stock Quote
A stock quote is a snapshot of a stock's current trading data. Here are the key numbers and what they mean.
Price
The current trading price per share. This changes throughout the trading day based on supply and demand.
Volume
The number of shares traded during a given period. High volume means many buyers and sellers are active; low volume means less activity.
Market Capitalization
Market cap = share price × total shares outstanding. It tells you the company's total market value.
- Large-cap: Over $10 billion
- Mid-cap: $2–10 billion
- Small-cap: Under $2 billion
P/E Ratio
Price-to-Earnings ratio = share price ÷ earnings per share. It indicates how much investors are paying for each dollar of profit. A higher P/E may suggest growth expectations; a lower P/E may suggest the stock is valued more conservatively.
These numbers together give a quick picture of a stock's size, activity, and how the market values it.