How to Read a Stock Quote (9 Steps)

Locate the abbreviated name of the company. The abbreviation usually appears in the third column ('Stock').
Look at the 52-week high ('Hi'). This is the highest price anyone has paid for the stock in the past year, and it appears in the first column.
Find the 52-week low ('Low'). This is the lowest price paid for the stock in the past year. The figure appears in the second column.
Note the ticker symbol. This symbol, used by the stock exchange to identify the company, appears in the fourth column.
Check the dividend and yield figures that appear in the fifth and sixth columns. 'Div' is the amount of cash that would be paid to shareholders yearly based on the most recent quarterly payment. 'Yld' is the cash dividend divided by the closing price of the stock.
Review the 'PE' figure that appears in the sixth column. The price-earnings ratio is calculated by dividing the closing price by earnings for the past four quarters combined. This provides a way to compare stock values.
Note the seventh column, 'Vol.,' which shows how many shares of the stock changed hands the previous business day.
Glance at the eighth and ninth columns, which show the highest ('Hi') price and the lowest ('Lo') price paid for the stock on that day.
Read the last two columns to find out the price at which the stock closed for the day ('Close') and the net change ('Net chg') from the day before.

How to Calculate Stock Risk (3 Steps)

Evaluate the market risk of the stock. Identify the industry the stock belongs to and read the industry forecast as well as the forecast for the stock market as a whole. If the you are in the middle of a bear market (stock prices are falling), the stock you are interested in is more likely to fall as well.
Measure the stock-specific risks. This risk depends primarily on the performance of the underlying company, namely on its market position, revenues, profits, orders and costs. The company's dividend policy (whether it reinvests its profits or pays them out to shareholders) also matters.A good way to measure stock-specific risks is to calculate the company's price-to-earnings (P/E) ratio. To do that, divide the corporation's market share price by the earnings per share. Alternatively, divide the company's market valuation by the profits it made during the previous year. High P/E ratios (e.g., 30 or above) may indicate that the stock is risky (the average P/E ratio is about 15).A good look at the company's break-up value is also important. The break-up value is basically the amount of money shareholders would get if the company was liquidated. It can be estimated as the company's assets minus its liabilities. The higher the break-up value of a company, the less risky its stock is (investors can recoup their investments even if the company is sold off).The risks to the company's performance may also come from competitors or innovation in the marketplace. Cheap Asian competitors are a particular concern in the 21st century.
Analyse the market and stock-specific risks and evaluate the overall stock risk. What are the chances that the stock price will go down or that the company will fail? Combine the evaluations from Steps 1 and 2 to measure the stock's risk.

How to Calculate Preferred Stock

Obtain the original price at which the preferred stock was issued. This is called the par value and can be found in the stock's prospectus. The prospectus is located on the company website; if not, you can ask your broker to provide the information.
Obtain the preferred dividend. The dividend can be found in the prospectus or provided by your stock broker. The prospectus may present the preferred dividend as a percentage rate of the par value; this is called a dividend rate. If so, multiply the rate times the par value. This will equal the preferred dividend.For example, if the prospectus gives a dividend rate of 6 percent and a par value of $25, the preferred dividend would equal $1.50 (.06*25=$1.50).
Use an online calculator to determine the required rate of return. This is the minimum rate that investors need before they invest their money. Sites such as Moneychimp.com, Money-zine.com and Investment Analysis Calculator (see Resources), are easy to use and provide accurate calculations for the required rate of return.
Divide the preferred dividend by the required rate of return. The result is the preferred stock price. This price is the highest amount you should pay per share. If you pay any more than this, you will be overpaying.