COPYRIGHTED MATERIAL
A
B C D E F G H
I
J
K
L
52W HI 18.76
52W L 11.22
Stock
Tkr
Div
Yld % 1.83
EPS 00 1.68
P/E
Vol
Hi
Low
Cls
Net Chg
MrkCap
0.15
HealnnHeels
HnnH
.28
9
1,570,000
15.31
14.90
15.25
129.46M
SLIDE 15H
A 52 W Hi & 52 W Lo These numbers indicate the highest and lowest price of a share of the stock over the past 52 weeks . This enables an investor to see the stock’s price range and fluctuations . Most online stock charts are interactive, including a link here which opens to a graph of the stock’s price over the course of the year. The graph indicates whether the stock price is trending up or down, is volatile or stable, and when price fluctuations occurred . The ability to track trends is important. Many investors study stock movements and value changes in order to take advantage of upward or downward price trends. Engage students in a discussion: Put on your investor thinking caps: Why might an investor value this information? (Take answers.) Answer: Lots of reasons. It might tell them the 52 week price high was almost 12 months ago, and the stock has been steadily declining since then, or that the stock is a particularly volatile one, with wide and/or frequent fluctuations; it might tell the investor that the stock is trading at its lowest price in several months, which may signal it is a bargain. The information can be compared to other stocks in the sector or industry to see if the price fluctuations are industry-wide, sector-wide, or isolated to the particular stock. PRODUCT PREVIEW B Stock Easy! That’s the name of the company. C Tkr This refers to the stock symbol or ticker symbol for HealnnHeels: HnnH (Recall students learned about ticker symbols in the last lesson.) Investors use the ticker symbol to find the stock quote online. D Div Div means dividend . It tells you that HnnH has declared a dividend of 28 cents per share . If this space is empty or has “–”, it means no dividend has been declared. Engage students in a discussion: Recall that a common share dividend is declared at the discretion of a board of directors. A dividend represents a portion of the corporation’s net profits. Put on your investor thinking caps: If you owned 1000 shares of HnnH, how much money would be distributed to you in dividends? Answer: $280.00. If a mutual fund owned 120,000 shares, how much would it receive? Answer: $33,600. Generally, investors don’t get rich on dividends. Some companies declare regular annual or quarterly dividends, which makes the stock attractive to someone who wants the stable income. Many companies have never declared a dividend, choosing to reinvest the profit in the company to develop or improve products, expand their market share, or pay off debt.
287 THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY
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