One of the most important tools in trading the Philippine Stock Market is a price chart used for technical analysis. In 2007, the Company changed its name back to Macy’s and now trades under the symbol M. Yahoo will give you prices back to 1992. As it turns out, my daughter’s question was especially complex because the company whose stock price she was seeking, Del Monte, was not trading on any of the stock exchanges on the dates mentioned. You should also consider applying stock splits (history) when building your own stock database, sources like are good. The Bank of Montreal common share prices constitute historical data and are presented only for information purposes. The total return from owning stock arises from two sources: dividends and capital gains.
In the United States, most stocks are traded either on the New York Stock Exchange (NYSE, or Big Board”) or on NASDAQ, an electronic market that grew out of the over-the-counter” market in 1970. In contrast, the NASDAQ has no specialists and no specific physical location since market makers and traders operate wholly through electronic systems. Many of the newly issued ETFs, or exchange-traded funds, that are designed to match the major stock market indexes are traded on the Amex.
In addition, there is a smaller exchange, also located in New York, called the American Stock Exchange (Amex), which trades in small stocks that are not large enough to qualify for trading on the NYSE. The world’s most famous stock index, and the one that has the longest continuous history, is the Dow Jones Industrial Average, which dates from 1897 and currently contains thirty large firms. The S&P (Standard and Poor’s) 500 Stock Index contains five hundred stocks and is a value-weighted price index that was founded in 1957. Therefore, stock prices may not fall and may actually rise when interest rates rise.
A total return index for stocks can be computed by assuming that all dividends are reinvested by buying additional shares of the stock. Two major factors affect stock prices: earnings, which determine the dividends on the stocks; and interest rates , which discount” future cash payments to the present. Notwithstanding, low-interest-rate environments are usually deemed good for the stock market, and stocks usually respond favorably when the Federal Reserve lowers rates and unfavorably when it raises rates. But as the holding period becomes greater, the frequency of stock outperformance becomes very large.
The annual standard deviation of after-inflation returns has averaged about 18 percent, which means that about two-thirds of the time, stock returns will be in a range from −12 percent to +24 percent over a twelve-month period. In fact, thirty-nine of the forty-two recessions the United States has experienced from 1802 through 1990 were preceded or accompanied by declines of at least 10 percent in the stock index. In the postwar period, the peak of the stock market preceded the peak of the business cycle by between six months and eight months, but this is quite variable. On other occasions, stock movements were caused by accumulated optimism or pessimism of investors.