Chapter 1: The Stock

Market1.3 Stock Market Data Charts

How Can Stock Data Be Displayed???

• Why might an investor be interested in historical information about the trading prices and volumes of a particular stock?

Data Representation• Data can be presents in list form or

in graphical formo Graphical form is known as a Stock Charto Most stock charts present historical information

about the trading prices and volumes of particular stock

• A common stock chart format is the stock bar chart

General Electric stock bar chart

• Page 16 in your bookso Copy chart in your notes

Example 1• The stock bar chart below presents trading

information for the week of April 28 for Ford Motor Company. Which day had the greatest high price? Which day had the least low price?

Example 2• Between which two days did after hours trading appear

to have the biggest impact on the difference between the closing price and the following day’s opening price?

Example 3• Approximately how many shares of Ford Motor

Company were traded over the five-day period?

Example 4 • Use the information below to construct a one-day

stock bar charto Open: $40.10o Close: $39.79o High: $40.65o Low: $39.39o Volume: 44,500,000

Candlestick Charts• Similar to a stock bar chart but contains more

information at a glance

• The green or white candlestick indicates the closing price is greater than the opening price and the red or black candlestick represents the opposite

Example 5• Explain the difference

between the market action on Sept 8 compared to Sept 9 shown in the candlestick chart.

Example 6• A. What was the

approximate difference between the highest price and the lowest price for the week shown?

• B. The lengths of the candlesticks for Sept 8 and 11 are approximately the same. What does this mean about the trading prices on both of those days?

Example 7• Interpret the green candlestick that is shown as

only a rectangle with no line at the top or bottom.

1.3 HW• p.20#2-12all; 14, 15