Stock quotes contain a wealth of information that helps you make trading decisions. Learning to read this data quickly and accurately is a fundamental skill every trader needs. This guide breaks down each component of a stock quote so you know exactly what you are looking at.
The Basic Stock Quote
When you look up a stock, you will see several pieces of information. Let us examine a typical quote:
Sample Stock Quote: XYZ Corp (XYZ)
Last Price: $152.35
Change: +$2.15 (+1.43%)
Bid: $152.30 x 500
Ask: $152.38 x 300
Volume: 8,234,567
Day Range: $149.80 - $153.20
52-Week Range: $98.50 - $165.40
Price Information
Last Price (Current Price)
This is the price of the most recent trade. It is what most people mean when they ask "what is the stock price?" During market hours, this updates in real-time as trades occur.
Change and Percent Change
Shows how much the price has moved since the previous close:
- Green/positive: Stock is up from yesterday's close
- Red/negative: Stock is down from yesterday's close
The percentage change helps you compare movements across stocks with different prices.
Open Price
The first trade price of the day. Comparing open to previous close shows any overnight gap.
Previous Close
Yesterday's final trade price. This is the reference point for daily change calculations.
Bid and Ask (The Spread)
Understanding bid and ask is crucial for getting good trade execution.
Simple explanation: The bid is what buyers are willing to pay. The ask is what sellers want to receive. The difference is the spread.
Bid Price
The highest price someone is currently willing to pay for the stock. If you sell at market, you will likely receive close to this price.
Ask Price (Offer)
The lowest price someone is currently willing to sell the stock for. If you buy at market, you will likely pay close to this price.
Bid/Ask Size
The numbers after the prices (like "x 500") indicate how many shares are available at that price. This is typically shown in lots of 100 shares.
Spread Example
Bid: $50.00 x 1,000 | Ask: $50.05 x 800
Spread: $0.05 (0.1%)
If you buy 100 shares at market, you pay approximately $5,005.
If you immediately sell at market, you receive approximately $5,000.
The $5 difference is the spread cost.
Why Spread Matters
- Tight spreads (a few cents) are good for traders
- Wide spreads increase your trading costs
- Liquid stocks have tighter spreads
- Spreads widen during volatility and outside market hours
Volume Data
Volume
The total number of shares traded today. High volume indicates strong interest and typically means better liquidity.
Average Volume
The average daily volume over a period (usually 30 or 90 days). Comparing today's volume to average tells you if trading activity is unusual.
Volume Analysis
Stock ABC: Today's volume 5 million, Average volume 2 million
This is 2.5x normal volume, suggesting unusual interest.
High volume on price moves often indicates the move has conviction.
Low volume on price moves may indicate weak conviction.
Price Ranges
Day's Range (High/Low)
The highest and lowest prices traded today. Shows the day's volatility and where price has traveled.
52-Week Range
The highest and lowest prices over the past year. Helps you understand where current price sits in context:
- Near 52-week high: Stock showing strength (or potentially overbought)
- Near 52-week low: Stock showing weakness (or potentially oversold)
Fundamental Data
Stock quotes often include basic fundamental information:
Market Capitalization (Market Cap)
The total value of all outstanding shares. Calculated as: Share Price x Shares Outstanding.
- Large-cap: Over $10 billion (more stable, less volatile)
- Mid-cap: $2-10 billion
- Small-cap: Under $2 billion (more volatile, higher risk/reward)
P/E Ratio (Price-to-Earnings)
Share price divided by earnings per share. Shows how much you pay for each dollar of earnings.
- High P/E (30+): Market expects high growth
- Low P/E (under 15): May be undervalued or facing challenges
- Negative P/E: Company is losing money
Dividend and Yield
If the company pays dividends:
- Dividend: Annual payment per share
- Yield: Dividend as percentage of share price
EPS (Earnings Per Share)
The company's profit divided by shares outstanding. Shows profitability on a per-share basis.
Reading Level 2 Quotes
Advanced traders use Level 2 quotes (also called the order book) to see more depth:
- Multiple bid and ask prices, not just the best ones
- The size of orders at each price level
- Which market makers are showing quotes
Level 2 insight: If you see large sell orders stacked above current price, it may act as resistance. Large buy orders below may act as support. This information helps anticipate short-term price movements.
Real-Time vs Delayed Quotes
Be aware of quote timing:
- Real-time: Prices update instantly as trades occur
- Delayed: Prices are 15-20 minutes old
Most brokerage platforms provide real-time quotes. Free financial websites often show delayed quotes. For active trading, you need real-time data.
See Your Trades in Context
Pro Trader Dashboard shows your entry and exit prices alongside key quote data, helping you analyze whether you got good fills.
Quick Reference: What Each Data Point Tells You
- Last Price: Current trading value
- Change: Today's movement direction and magnitude
- Bid/Ask: What you will pay or receive for market orders
- Spread: Your implicit trading cost
- Volume: How actively the stock is trading
- Day Range: Today's volatility
- 52-Week Range: Long-term price context
- Market Cap: Company size
- P/E Ratio: Valuation relative to earnings
Summary
Stock quotes pack a lot of information into a small space. The price data tells you where the stock is trading and how it has moved. The bid/ask spread shows your trading costs. Volume indicates market interest. Fundamental data provides context about the company's valuation.
Practice reading quotes regularly and you will soon parse this information at a glance. This skill helps you make faster, better-informed trading decisions.
Continue learning with our guide on market hours or explore trading terminology.