Stocks

Stocks

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Stocks Explained

Stocks are often bought for their dividends. If a stock doesn't pay dividends, an investor is looking for capital gain instead.

Stocks

Investors and traders should bear in mind that Stocks are volatile - that is, they change in value constantly. And while the opportunity for capital gains is often an attractive one, the potential for capital loss exists as well.

What Are Stocks?

Stocks Explained

When you purchase Stocks, or Equities you become a part owner of the business. This normally entitles you to vote at the shareholders' meeting and allows you to receive any profits that the company allocates to its owners. These profits are referred to as dividends.

Many Stocks don't pay a dividend though, so they aren't bought for income. Instead, purchasers hope that they will be able to sell them later for more than they paid, and make what is called a capital gain.

Investors and traders should bear in mind that Stocks are volatile - that is, they change in value constantly. And while the opportunity for capital gains is often an attractive one, the potential for capital loss exists as well.

Compared to bonds, Stocks can often provide the opportunity for relatively high potential returns. The price for this potential, though, is that you must assume the risk of losing some or all of your investment.

Stocks Features

There are several reasons to consider owning Stocks.

Capital Gains Cash Dividends Payout ratio Dividend yield Stock Dividends Stock Split Voting Rights Limited Liability Liquidity

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Stocks | Scotia iTRADE

How Stocks Are Priced

Stocks can generally be sold at the "bid" price, that is, the highest price at which one can sell stock as determined by the market. And they can generally be bought at an "ask" price, the lowest price at which one can buy the stock as determined by the market. Together, the two prices comprise a stock's "quote." The difference between the two prices is called the "spread."

Here is an example of a stock quote for Bank of Nova Scotia:

Last The last price the stock traded at on the day in question

Change The dollar value and percentage change of the Last price compared to the previous trading day's close

Bid If you are selling, the bid is the highest price at which someone is willing to buy from you

Bid Size The number of shares currently available for sale displayed in board lots (usually 100 shares)

Ask If you are buying, the ask is the lowest price at which someone is willing to sell to you

Ask Size The number of shares offered at the ask price displayed in board lots

Volume The total number of shares traded so far that day

Day Range The lowest price and the highest price the stock has traded at so far that day

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Stocks | Scotia iTRADE

Stock Quote

The price of a stock as quoted on an exchange. It provides information such as a stock's bid and ask price, the change to the last trading day, as well as volume traded.

Get a Stock Quote

Navigate to `Quotes & Research' and select `Equities'. Type the Equity symbol you are interested in, and select `Go'. The stock quote will show up on top of your Equities Overview Page.

A quote can also be found within the trade ticket:

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Stocks | Scotia iTRADE

Key Statistics

When visiting an Equities Overview page, you also have access to Key Stats

52 Week Range The lowest price and the highest price that the stock has traded at in the last 52 weeks

Market Cap The market capitalization of the company, which is the Shares outstanding x the Last price

Last Dividend The date the most recent dividend was paid on the stock (if any) and the amount

Dividend Yield The annualized dividend expressed as a percentage of the Last trading price

The Ex-Dividend Date The date the stock went ex-dividend, which means the date it began to trade without the purchaser being entitled to receive that dividend

Shares Outstanding The number of shares that have been authorized, issued and purchased by investors, and are held by them.

P/E ratio Probably the most frequently used ratio in all of stock market trading. The number is the quotient obtained by dividing the price by the earnings per share

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Stocks | Scotia iTRADE

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