| Generally, when people think of the stock market, | | | | Imagine you find a stock titled ABC. ABC's current |
| they tend believe that its difficult or takes years to | | | | trading price is $51.94. You are planning to keep the |
| get a good understanding on how it works. But it's | | | | stock for more than a year and make it a big player |
| not as difficult as one may think. In fact, if you have | | | | in your portfolio, but you don't know if investing in |
| a good enough grasp on reading and interpreting a | | | | the stock is a wise decision. Then you take a look at |
| stock's quote summary, then you have what it takes | | | | the 52 week range. The lowest price the stock has |
| to make educated small scale investments. Now | | | | been at this year was $4.32 and the highest the |
| remember that I said small scale investments, | | | | stock has been $15.21. Would investing in this this |
| because you don't want to perform medium to large | | | | stock be a wise decision or not? |
| scale investments based solely on the stock's quote | | | | Well let's reevaluate the facts. The stock's current |
| summary. You are going to need to do more | | | | trading price is $51.94. The 52 week range said that |
| research and more investigating on a stock before | | | | the stocks lowest trading price for the year was |
| planning to invest larger sums of money. | | | | $4.32. Here is a side note, whenever a stock's trading |
| Nevertheless, the stock's quote summary is still an | | | | price is under $5.00, it would make the stock a penny |
| important resource where you can quickly gather | | | | stock listing. The highest trading price the stock has |
| vital data on any stock. | | | | been at in the last year was $15.21. Based solely on |
| One of the most valuable pieces of information | | | | the data, provided investing in this stock would not |
| included in a stock's quote summary is the 52 week | | | | be a wise decision. The current trading price very |
| range. The 52 week range displays the stock's | | | | much inflated and there is no telling when the price |
| lowest trading price and the highest trading price for | | | | would crash back to its normal prices. |
| the year. This data in invaluable because you will be | | | | Though that was a very simple example, it is evident |
| able to get a good feel of where the stock has | | | | how important the 52 week range is. So whenever |
| been. The data is also helpful in estimating the stock's | | | | you are planning to invest in a particular stock, or if |
| future prices. If you look at a stocks current trading | | | | you are just browsing around, remember to glance at |
| price and see where it falls on the 52 week range, | | | | the 52 week range. It can be a determining factor on |
| you will be able to make an educated estimation on | | | | whether a stock increases or decreases in price. |
| where the stock is going. | | | | Don't forget that the 52 week range is only one |
| Here is an example that should give you a better | | | | factor out of many that should be taken in to |
| understanding of how to utilize the 52 week range. | | | | consideration. |