Understanding stock quotes

Stock quotes generally consist of many data points. Many exchange-traded securities, including stocks and ETFs, display similar quote information. For investors, understanding these key data points can be critical.
The different components of a stock quote can provide useful context about a security’s recent trading activity.

Take Note

Real-time stock quotes may differ slightly from delayed quotes, especially during periods of heavy market activity or volatility. Even small price changes can impact trade execution prices.

Security name: This is the name of the company or organization offering the stock.

Ticker symbol: This is a series of unique letters or numbers assigned to the stock which are used to identify it.

Bid: The bid price is the highest price a buyer is currently willing to pay for a share.

Ask: The ask price is the lowest price a seller is willing to accept for a share.

Volume: This is the total number of shares of the stock that have traded hands on a given day. While some stocks may trade thousands or millions of shares a day, others may only trade a few hundred shares or less.

Bid-ask spread: This is the difference between a stock's bid and ask price. On many Canadian-listed equities priced at $1 or more, the bid and ask size is commonly displayed in board lots of 100 shares. For example, a lot size of 2 generally represents 200 shares available at that bid or ask price but can be traded in any number of shares including partials. Lot sizes and display conventions can vary by market and security.
A smaller bid-ask spread can indicate stronger liquidity or trading activity, while a wider spread may suggest lower liquidity, lower trading volume, or higher volatility. 

Lot: This is the total number of shares that are available for trading at both the ask and the bid price. The standard lot size is 100 shares, but they can be traded in any number of shares.

Last trade price: This is the price at which the last trade was executed. Investors often compare the last trade price to the closing price from the previous session.

Open: The opening price is the first recorded trade price of the trading day. Investors often compare it to the current or previous day's closing price to track price movement.

Close: The closing price is the stock’s final trading price of a market session. Comparing the opening and closing price can help investors understand short-term market momentum.

Daily high-low price range: The daily high-low range shows the highest and lowest prices a stock traded at during the day. Investors may use this range to measure volatility.

52-week high-low price range: The 52-week range helps investors see how a stock’s current price compares to its highest and lowest over the past year.

Market Capitalization: Market capitalization, or market cap, is the total value of a company’s outstanding shares based on the current stock price. This is often used to compare the size of companies.

Price-Earnings Ratio (P/E): The price-to-earnings (P/E) ratio compares a company’s share price to its earnings per share. Investors often use it to help evaluate whether a stock appears relatively expensive or inexpensive compared to similar companies.

All the above data points can prove to be very helpful when researching the company. Stock prices are also influenced by supply and demand. When more investors want to buy a stock, prices may rise. When more investors want to sell, prices may fall. The price can rise as more investors try to acquire shares. On the other hand, as more sellers enter the market, the increased supply of shares can drive prices lower.