Original subtitles

So now you need to understand, you know, how to kind of understand stocks and how to kind of speak

the language and how to interpret some of those comments, sometimes confusing numbers and things you

might see out there.

So we're going to look at stock quotes.

So in some cases are the Amazon is up 10 percent today.

Where are they getting that from and how to understand that and how to understand a stock quote?

And we'll also look at a stock chart, too, because I can kind of graphically show you how things are

looking for a stock.

We give a little preview with that, that one or a slide or two earlier.

So stock quotes in the stock charts may seem intimidating first, but by the end of this lesson, they'll

seem really, really easy, I promise you.

And it helps you to kind of how you can look up some stocks.

You know, you can look up some stocks yourself that might interest you at the end of the end of the

lesson today that you can kind of do for homework because like, I'm going to show examples, walk you

right through it and then like, Well, I'm interested in this stock.

You can now afterwards, after the lesson, be able to look up and start comparing and really kind of

get going right before you get into next day, day two.

All right.

So let's look at stock quotes and how those work.

So first off, you need a place to find the stock quotes.

So I have many students from all over the world, so the easiest way is to look it up within your own

country, you know, so put in like stock quotes in India or U.K. or USA or wherever you live.

Put that in and you'll start getting back things as far as different services that provide a stock quote

now, two that are pretty worldwide and very universal and easy to use.

Our Yahoo Finance and Investing.com and how the quotes and charts are anything look are essentially

the same that might be laid out a little differently.

So I'm going to show you Yahoo Finance, because it's really easy to use and it's globally as well,

too.

So that's why I'm going to show you some stock quotes and some charts, and we're going to use Yahoo

Finance, but you can use other ones too as well.

There's many of them out there.

So if you go to that finance site yahoo.com at the very top of the screen, you'll see where it says

search for new symbols or companies, and you just type in companies that are interesting to you.

So if you're interested in Tesla or Amazon or Facebook or whomever, you just type in the company name

and you'll pull down a list and you can just find it very easy.

We're going to look out for fun.

We're going to look at two companies.

Here are two very different companies.

We're going to look at General Mills, which makes cereal, amongst other things they do.

They make food products so like yogurt, they actually are starting to really get involved in pet food,

for example.

But they're famous for their cereals.

Known as Big G, her Big G brand cereals like Cheerios and Wheaties.

And one of my favorites, Lucky Charms.

Not healthy, but I like in many ways that marshmallows in them.

So general General Mills and then we'll look at HubSpot very different company.

Their customer relationship management software platform very much oriented around like marketing and

stuff.

So if your company or company needs to handle how to do social media marketing and organize all their

different social media marketing, the software that can help do that is HubSpot.

So they're more of a technology company.

General Mills has more, of course, of a regular old food company been around for a long time.

So let's look at General Mills and HubSpot, and we'll look at their charts.

Are we going to look at their quotes first?

So if you go to Yahoo Finance, you type in general Mills.

This is what I'll come back with.

All right.

So at first you might be thinking, what is all this stuff?

No worries.

We're going to walk right through it, right?

So I'm going to start in the upper left to you, of course.

Have the name Cheryl Mills where it says I asked, that's what's called a ticker symbol.

So you can just it's a kind of shorthand.

So instead of like in Yahoo Finance to search for General Mills, I could put just GIFs and it's just

a shorthand for that.

Like Johnson and Johnson is JNJ.

Sometimes you refer to that way and then you see the big thing, which is the price, you know, so

sixty three, seventy nine and you can see, oh, two point three, and that equates to up point four

seven for the day.

So for the day, this is how they're doing as far as in this particular day.

So they're doing, you know, pretty good a point for seven for the day.

So that's six three seven nine, by the way, is the last price that Soledad.

You may not pay that price.

You may pay a little more, a little less, but that's the number they use for quotes and for charts.

And everything is the last price that sold that and that if you watch that will constantly change almost

every second throughout the throughout the day.

So Joe Mills right now is trading or selling at sixty three seventy nine.

If we go down the and then the middle of this is the summary.

This is the quote.

And then you can see you can get the other stuff like charts, conversation, some real deep statistics,

profile tell you what the company is about that kind of stuff.

Financials show income statements, but we're going to be going to look at the quote here.

So if we look at this, we're going down the left hand side now.

It shows the previous close.

So what is the end of the trading day that wanted to close that?

So close that?

Sixty three, forty nine.

So we know it's it's up from there, right?

At least as far as this time.

It actually opened the day at 60 to 80, so that's just tells you what it was.

The first trade of the day was 60 to 80, and now the last trade when we took this screenshot was at

sixty three seventy nine.

So it gives you a little information there.

Now was a couple of confusing things.

So with this bid and ask Price, what is what is that all about?

So simply, your bid price is the highest price a buyer is willing to pay, right?

So right now, the highest price a buyer is willing to pay is sixty three dollars and thirteen thirty

eight cents.

Now this changes constantly to our last price and we paid sixty three seventy nine.

When you actually go on to buy, it might be getting close at sixty three seventy nine or it might be

more closer to around the 60 through 30.

They're constantly changing and how many people are looking at that price as far as up bid prices,

the eleven hundreds so highest price right now, some is willing to pay a sixty three thirty eight.

Now the asking price is the lowest price a seller is willing to accept.

And these are usually very close.

So this is you can see it's sixty three, forty eight, so about 10 cent difference between the two.

So that difference is what's called the spread.

By the way, I've ever heard anybody say, Oh, the spread, you know, that's the difference in the

closer the numbers are together, the more easier transactions are.

You don't have a wide spread, you have a narrow spread in this case.

So you can see that it's easier to have a meeting of the minds somewhere in the middle, maybe at sixty

three forty.

You know, it's constantly being where you can actually go in and buy stock, but that gives the idea

the range it might be trading in at that exact moment in time.

Then we if we time a range of some more, you can see the range for the entire day.

How is the day going as far as the lowest price to the highest price through the day?

So you can see during the day it's sold for sixty three 12.

So we bought a sixty three point one to in some way paid sixty three ninety three for it.

Some human being actually bought it at this.

And right now we're going to quote a sixty three seventy nine would be the market price or kind of the

current price or in fact, the last price that sold out.

And that's in between those two.

But give us an idea of the range and then the same for the day.

And then if you like a 52 week or the last year, you can show your range.

This is kind of helpful.

Is the stock been up over the last year?

Have been kind of it more near the bottom of its range over the last year?

And if we look at General Mills, you know, fifty three ninety six was the lowest to sixty six fourteen,

so it's more closer to the high end right now.

You'd be buying it near the high over the last 52 weeks.

Volume is simply how many transactions there have been, so this is a pretty well traded big company

stock, a large cap stock, you'll hear about that tomorrow.

Market cap And so it's been one hundred eighty nine thousand transactions early in the day, and you

can see that's a lot of transactions.

The the average volume for the day because we're early in the day when we took this quote is a little

over 4.4 million.

So you can see we're early in the day, but we should average around 4.4 million.

Some days are lighter and some days are larger as far as the number of volume.

The market cap that shows you how big the company is in relation to other companies.

So if you're comparing one company to another, the bigger that number, the bigger it's considered

as far as in the stock market.

Now, tomorrow in day two, we're going to go really into detail and market cap, so we're going to

hold off on a couple of things here, but we'll hold off on market cap till tomorrow.

Now, beta is a measure of risk.

All right, so you want to always.

Is General Mills a risky stock or less risky stock?

And there's many different ways to measure beta.

Ask me measure risk and beta is one of the easiest ones, which is, you know, understanding how it

compares to the wider market.

And so the why and this is looking back over five years looking at the monthly, you know, change in

prices basically up or down, how much up or down is it?

And so what this number is telling us is how does it compare to the broader market in this case, we

have like a broader largest five hundred U.S. stocks, right?

The S&P 500.

So how does it compare to that?

So if it matched exactly those five hundred stocks is worth going up and down in price, how risky or

how volatile, you know, it would have a beta of 1.0.

So if it matches the market, it would be at one point or if it goes up higher.

And let's say, if it was if you're at one point, oh, for the market and the stock was at 1.0, then

they're going to move up together.

You know, up and down, you'll see essentially move up the same degree or percentage together.

Well, there's an update or down to if, let's say, it's above 1.0, let's say the market's always

at one point on, let's say my stocks at one point one.

Right.

So that means when the stock market goes up the broader market, my stock is going to go up even more.

In fact, by a factor point one over 10 percent.

So when the market's up, then this is going to go up because it's up one point that's at one point

zero.

By the same token, if we start level in the stock market's down, then this is going to go down further

by that same amount down that extra point, one old, basically.

So numbers that are above or greater than 1.0 are more volatile as in.

They'll go up when the market's up, but they'll also go down when the market's down faster or bigger,

bigger ranges.

Right.

So you may see that with like a lot of like, I'm your high beta technology stocks, for example, where

you know, they may go way up when the market's up, but when the market's down, they're really getting

crushed.

So General Mills, what was John Mitchell says point five five.

So the same kind of the same principle just in reverse.

Right.

So if it's going to go up, you know, the market's going to go up.

Cheryl Mills will not go up as far.

I'll go play point five five.

So it doesn't go ahead as much as up on the upside.

By the same token, if the market was down, let's say down, then General Mills is not going to go

down as far either.

So it has a narrower trading range up and down, which means it's basically less risky or less volatile,

less ups, you know, less higher highs and less lower lows.

You know, it's it's kind of stirring and within a narrower range than, let's say, the wider range

of the overall market.

So if you like stocks, let's say they are not as volatile or go wildly up or wildly down, then General

Mills might be interesting to you because you're looking at that data under 1.0.

So to recap that above 1.0 wider swings below 1.0, much less less wider swings of zero point five five

is or is a really low beta.

So this is more of a considered a very less risky as far as volatility, how much you go up and down

stock?

OK, let's go back to our chart here.

So if we look at this now, you're going to learn about some ratios.

So we have some.

A common one is the price to earnings ratio and this one says team, that means trailing 12 months.

So it's going back in time looking at the, you know, the price to earnings and day three.

We're going to actually getting real detail on the price to earnings right now.

To understand this, it's a relation to what's the price I'm paying the sixty three point seventy nine,

for example, relative to the company's earnings.

How is the company's earnings doing?

Because earnings can be a real predictor of how the stock price will change.

So a price earnings ratio average is right around 13 to 16.

You know, as far as price to earnings or earnings ratio for the whole market, it can vary by industry.

So General Mills is right in there.

But coming up on day three, when we look at ratios and fundamental analysis, we're going to get in

a real detail on this.

Just understand that when you're maybe looking at some stocks now, if it's above like 15, you know,

that's a higher price to earnings.

You're paying more for those earnings and you're paying more for that compared to.

OK, that has a lower price earnings ratio.

Basically, the lower the number, you know, the better, but there's more to it than that and we're

going to learn about them.

EPS is earnings per share, same thing over the last 12 months.

So for each share stock a person to own.

So I want to buy one share stock, I'll pay sixty three seventy nine to keep it simple.

And I would pay.

I would.

The earnings per share is four dollars and 12 cents, so it's good.

They're profitable, they're making money, actually doing pretty good.

So it's four dollars and 12 cents per share earnings date.

You might see something in here where it's showing when the next time they're going to update their

earnings.

Usually it's done quarterly, of course, and you hear about something or I've got the quarterly earnings

coming out right in the and they disclose how they did in the last quarter.

So a lot of times you'll see a date as far as either the date where they've announced they're going

to have an announcement around earnings or it's going to be a range sometimes or show range coming.

Give me an estimate when the next earnings announcement will come.

Now, the next one to look at is dividend that all stocks pay a dividend.

And we'll learn all about dividends and data here.

But this is looking at how much you earn as far as a dividend or income per share in the yield kind

of a percentage number.

So for now, just think, you know, the higher that number, that switching the percentage, the three

point to one, that's good, that's better.

And again, not every company pays a dividend.

Ex-dividend date simply means that if I own this stock by that date, then they're going to pay me money.

They're going to pay me that dividend again.

Hold on, Data's coming twenty four hours, we'll get really into dividends, but understand that you

can actually earn money just by owning the stock.

And that's the dividend and the dividend.

If it's listed there, they'll show an estimate of when the next dividend date.

And then a lot of times will also show a one year target estimate that's kind of based on some if you

stock market analysts or whatever, they're compiling that together.

So if we look at that, you know, analysts are saying, OK, a year from now, they're anticipating

it's going to be like sixty two dollars and sixty six cents.

So that's kind of telling you look like, well, wait a minute, you know, General Mills is selling

right now for sixty three seventy nine.

Why would I buy it?

Well, you mean that at least based on analyst estimates.

So the analysts are not right all the time.

Maybe most, many times they're not right.

So don't let that throw you, by the way, just the impression you're going to hold for a longer term

than a year.

You can just kind of look at that and kind of get an idea what they're looking at.

And then to the right is the chart, right?

So this is showing like a six month chart and we're going to learn about charts, you know, coming

up in just a moment, we'll get into how to read a chart.

But this kind of shows how the prices have gone in this case over the last six months.

And you can see that they've kind of gone down a little bit and then they came kind of back up.

So right now it's green, so they're up.

So that's General Mills.

We took some time to really go through line by line on that stock quote chart.

Let's do a quicker one with HubSpot.

We'll go through that one quickly and and you can always rewatch this again to kind of, you know,

get it all together here.

So we look at HubSpot.

You can see their ticker symbol is, yeah, it's right.

It's hub and your hubs there on the Nasdaq or New York Stock Exchange as well.

Now you can see their price is a lot higher, right?

They are trading for four and thirty two dollars and seventy nine cents.

That doesn't mean it's a better stock, by the way.

The price is sort of relevant that way.

It doesn't mean I should buy it now because it's more expensive than General Mills are just showing

what people are willing to pay for it right now.

In fact, you can see it's down for the day.

It's down two point one eight percent and the previous close was at four eighty three and it opened

at forty six and fifty five.

So people are like, Oh, let's keep buying this, but then it will start coming down.

Something has happened or people are saying, Oh, I want to get out of this and it's coming down.

You can see our bid and ask prices a little bit wider spread between the bid higher somebody is willing

to pay and the ask the lowest price a seller is willing to accept.

So you can see that's that's kind of going that's kind of going up there right now.

It's a very interesting thing versus the last prices for 70 to the date range.

I mean, look at that day range, we went from four seventy one to 480.

You know, that's kind of a good size range as far as in the day.

And then if we look at the fifty two weeks, you know, right around one hundred ninety eight to five

seventy four.

So it's really had quite a run up over the last year.

So if you bought in around 200 250, you almost doubled your money.

So great there, and you can see that their volume and their average volume is only five or thirty seven

miles on average.

I remember General Mills was like four million.

So different type of stock, you know, more of a smaller twenty two billion market cap stock, you

know, versus General Mills, which was around thirty eight billion.

Now we talked about beta memory, we talked about beta, where if it's above 1.0, it's going to go

up higher.

But if it's below it, when the market goes down, it's going to go down, go down further.

So much more risky, right?

So if we look at the beta of HubSpot, you can see they're at one point seven one.

So again, they're going to have higher highs and lower lows, you know, in comparison to the market.

So if you're looking for a safe, not real, risky stock, well, General Mills might interest you if

you're looking for more of a growth stock, more of a, you know, tech type stock than a beta 1.7 than

HubSpot might interest you.

Price to earnings.

I want to show HubSpot because it's going to show a couple of things here.

So price to earnings that's going to learn all about it again in day three, but its price basically

divided by earnings.

So if you don't have earnings, let's say you're losing money, then I'll show in a they're not applicable

because they're not making money.

So that's why if you if you're looking for some stocks in your home on your own tonight and you see

a, that's why you're showing they're not making money at least over the last 12 months in this case,

trailing 12 months.

And you could see that in earnings per share.

How much are we made per per share as far as the company has made in terms of income, you know, revenue,

your profit really, really its net profit and you can see they've lost $1.

99 cents per share.

So that means we're the company that we're investing in.

It's losing money.

Now, many companies, especially technology companies or biotech companies and health care, a lot

of companies lose money at the beginning, right, because they're building their business.

You know, the early days of Amazon, for example, they lost tons of money.

Tesla lost tons of money, but they were gaining market share and gaining, you know, sales, and they

were growing their company over time.

And then when they started to turn a profit, then they started turning, you know, big, big profits.

You think about Amazon in the massive amounts of profits that they generate.

But early on, you know, they weren't generating those profits.

So something to look at when you're looking at a stock chart, you know, will their company be able

to turn around and be able to, you know, they're on the path to profitability?

Or are they really struggling and going down maybe all the way to bankruptcy, which means we could

lose our lose our investment or certainly our stock price would go down.

So you can see here they're losing dollar 99 per share.

Same thing can happen.

Earnings statement Here you can see dividend.

What is forward would be what's expected dividend coming up and what's that yield?

We're going to learn about that again tomorrow.

So you can see that not all companies pay a dividend.

And because it says and they hear HubSpot does not pay a dividend, HubSpot doesn't pay you to own the

stock.

Income coming in to you.

So if you want to rely on some income coming from your stocks, you General Mills would give you that

were HubSpot would not.

We're going to learn about price appreciation and dividends coming up in data where, you know, show

you how to make money in stock, either by the price going up or having some dividends coming to you

and or both.

So hang tight on data, but that's something that you would look and say, Oh, if I'm looking at dividend

stocks, then I'm not going to get that with HubSpot.

And you can see there's no expected dividend date.

You know, you have to hold the stock because it's not applicable because there's no dividend, right?

And then we get a one year target estimate six 08.

So people are still very what they would call bullish, you know, versus to think the stock's going

to go up versus bearish, think the stock is going to go down bulls and bears.

And so with HubSpot, they say, Oh, OK, you're going to go up in price.

And then again, we'll look at the chart here and can see over the last six months that they're up over

the last six months, like General Mills, too.

But with stocks, you can see there's lots of peaks and valleys, right ups and downs.

So it's a lot more up and down volatile than maybe other investments like bonds and certainly cash.

So while we're timing charts, let's go now, dive in quickly and we'll look at charts up here in this

next part.