For Development Research purposes, we either value stock information at the current value or the historical value, depending on the date of the information we have about stock ownership. 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. Therefore, stock prices may not fall and may actually rise when interest rates rise. 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.
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. Because a recession did not follow this huge decline and stock prices subsequently recovered to new highs, many pointed to Black Monday,” as that day was called, as a confirmation of the irrationality” of the stock market. Stock prices, however, are determined by expectations of the future, which must, by definition, be unknown. Despite occasional false alarms, the stock market is still considered an important indicator of future business conditions. Several years ago, both newspapers cut back significantly on the stock price tables which now feature only major companies.
Subscribe to today and you’ll receive instant historical stock price whether the stock price us listed/under Dow Jones Industrial Average, NASDAQ and New York Stock Exchange. Imagine your panic if your accountant asked for a piece of missing data, i.e. the 1997 price of the stock your Fidelity mutual fund had recently sold. For many companies, historical stock prices are available on which is an excellent source to use when possible because the prices it lists are adjusted for subsequent splits and dividends. For the comparison, I was using historical data from previous projects as supplied by TickData and CQG.
But for the increasing number of companies that have changed hands or changed symbols over the years, it will likely be necessary to go off-line and use the Standard and Poor’s Daily Stock Price Record , the complete run of which is available at SIBL. It lists the high, low, and close stock prices daily of every company listed on the exchanges, i.e. the NYSE, ASE, and NASDAQ. The caveat of looking up a stock price in the Daily Stock Price Records is that the price on the printed page reflects the price on that date and is not adjusted for splits or dividends.