Why are stock quotes important?

Why are stock quotes important?

Quotes for stocks are the prices of stocks on a stock exchange. The bid and offer price for a specific stock can be found in a basic quote stock. The last traded price, and the volume traded can all be found in a basic quote for that stock. Online and on mobile devices, such as smartphones, are becoming increasingly popular ways for investors. They are popular to access stock prices as opposed to print media. There are many websites and portals that offer delayed stock quotes at no charge. While real-time stock quotes are generally only available to paying subscribers. For more information, visit roboforex.com.

The Key Takeaway

Quotes on a stock exchange are based on decimal prices of stocks.

The price is usually accompanied by supplemental information. Such as the high and low price for a given security in a day or the change in value.

A stock quote displays the value of a given security in relation to those buying and selling activities that affect its value.

Getting to Know Stock Quotes

Since April 9, 2001, all stocks in the U.S. are quoted in decimals instead of fractions. Thus, bid-ask spreads, which used to be 1/16th of a dollar (or $0.0625) for the most widely traded stocks, have been compressed dramatically. U.S. investors have been able to significantly cut transaction costs through decimal pricing by reducing the bid-ask spreads.1

Investors can learn from stock quotes

In addition to stock prices, stock quotes can contain supplementary information, such as the highs and lows of a security over the course of the trading day. According to the  quote, a security’s value may also have changed if compared to the closing price or opening price of the prior day. In a percentage format, the difference in prices can reveal how much value has increased or decreased.

A stock quote may also accompany analyst recommendations for a given security.  

The information might consist of the current, latest prices, or it may include metrics on the performance of the security daily, weekly, monthly, and annually, depending on the service and platform providing stock quotes. Additionally, stock quotes can include share price performance over time.

Stock quotes show the price of a security as a result of buying and selling. During each trading day, industry news and trends can affect investors’ choices regarding a security. The value of shares can rise as more investors buy into the company when beneficial updates are revealed, such as strong revenue and earnings from the company. As a result, shareholders and other investors are able to make investment decisions based upon stock prices.

An example of a stock quote

Think about Facebook, the social media giant. Additionally, additional information is listed, such as the ticker symbol (FB), exchange rate change (in percentages), and last quoted price when the company closed.