shares and stocks 3

2 . Stock price movement : Instantaneous stock price just tells us whether we are at profit or loss . It does not help us to understand how the stock is performing . The stock price vs time (in days /months / years) is drawn as a graph . From this graph we come to know how the stock is performing over time . Is there a continuous appreciation / ups and downs over time can be seen from such a graph . If the stock is appreciating steadily over a period of time we can expect the stock to perform well in future . This is only one factor . For a stock to do well many other factors need to be taken into account . Normally the stock is tracked for a period of one year or 52 weeks and looked into to check its highest price and lowest price . 

3. Volume : This tells us how many shares are transacted in a day or a given time . If the number of shares transacted is high (or volumes are high ) we can either purchase or sell the shares without any difficulty as there will be ready sellers and ready buyers . 

4 . EPS or Earning per share : EPS is the value obtained by dividing profit of a company by the total number of shares floated by the company . The stock price goes up or down depending on profit . It is important to study whether the company is steadily making profits and also is there a continuous growth in profits over time . 

After going through few more  metrics and other factors we will study individual shares to check whether we can invest our hard earned money in those shares .