1 3 STOCK MARKET DATA CHARTS

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1 1 3 STOCK MARKET DATA CHARTS OBJECTIVES Interpret a stock bar chart. Create a stock bar chart. Interpret a stock candlestick chart. Create a stock candlestick chart. Slide 1 1

2 Key Terms stock chart of stock data The graphical representation Slide 2 2

3 How can stock data be displayed? What types of data displays have you studied? Are any of these data displays a good fit for the stock market data? Why might an investor be interested in historical information about the trading prices and volumes of a particular stock? Slide 3 3

4 Stock Market Bar Chart Open High Low Close Bar Chart (OHLC) Oct 1 10:03 PM 4

5 EXAMPLE Which day had the greatest high price? Which day had the least low price? High Day with the greatest high is May 2 Day with the lowest low is April 29 Low Slide 4 5

6 CHECK YOUR UNDERSTANDING Between which two days did afterhours trading appear to have the biggest impact on the difference between the closing price and the following day s opening price? The biggest difference between the closing price and the following day's opening price occurred between April Slide 5 6

7 Example Approximately how many shares of Ford Motor Company were traded over the five day period? April ,000,000 April 29 60,000,000 April 30 70,000,000 May 1 65,000,000 May 2 90,000,000 Slide 6 Million Shares 7

8 Use the stock bar chart to write a brief financial story of the trading action that occurred for Ford Motor Company on April 28 and April 29. Slide 7 On April 28, one share of Ford Motor Company opened at $8.15. During the day, the shares reached a high of approximately $8.42 per share and a low of $8.10 per share. Ford closed at approximately $8.21 per share. On April 29, one share of Ford Motor Company opened at approximately $8.23. During the day, the shares reached a high of approximately $8.37 per share and a low of $8.07 per share. Ford closed at approximately $8.12 per share on that date. 8

9 EXAMPLE Use the information below to construct a one day stock bar chart. Open: $40.10 Close: $39.79 High: $40.65 Low: $39.39 Volume: 44,500,000 Slide 8 9

10 CHECK YOUR UNDERSTANDING Suppose that trading was suspended for one entire day for a corporation. What might the stock bar chart look like? If trading is suspended, there are no prices to chart and no volume to report. Therefore, the chart could either show a blank space on that trading day, or a horizontal line (bar with no height) for each portion of the chart. Slide 9 10

11 Candlestick charts Slide 10 11

12 EXAMPLE Explain the difference between the market action on September 8 compared to September 9 shown in the candlestick chart for Sept On 9/8 the stock closed higher than it opened On 9/9 the stock closed lower than it opened Slide 11 12

13 CHECK YOUR UNDERSTANDING Interpret a green candlestick that is shown as only a rectangle with no lines at the top or bottom. The close was higher than the open. Without any lines at the top or bottom, the graph indicates that the closing price was the high for the day and the opening price was the low for the day. Slide 12 13

14 EXAMPLE 5 What was the approximate difference between the highest price and the lowest price for the week shown in the candlestick chart for Sept. 7 11? The highest price for the week, approximately $39.90, occurred on September 7 as indicated by the highest portion of any of the candlesticks. The lowest price for the week, approximately $37.75, occurred on September 11 as indicated by the lowest portion of any of the candlesticks. The difference between the week s high and low prices is approximately $39.90 $37.75, or $2.15. Slide 13 14

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