Stock exchange page in newspaper: explanation

To the layman, the stock market page in the newspaper is nothing more than abracadabra. It is useful for a novice investor to have some insight into the stock market page. What about the layout of the stock exchange page in terms of bonds, options, investment funds, prices, AEX funds and other stock market data?

Currency rates

We’ve all seen them in the newspaper: the prices. The rates stated concern the rate of money when you withdraw money and the rate of money used for transactions when foreign money is settled (exchange rate). You always see a price that is lower than the other. The lower rate is the rate you pay to the bank when you buy money, the higher rate applies when foreign money is sold to the bank. The bank earns from the difference between the lower and higher rates. As a tourist it is better to withdraw money abroad.

AEX funds

Price information

The financial newspaper publishes information about the active shares. The AEX (Amsterdam Exchanges Index) consists of the most traded Dutch shares listed on the stock exchange. In most newspapers, the most active shares are at the top. Then a number of columns follow. Below the columns you will find information about the fund, share, and the price at which the shares are traded. From left to right you go from the highest price (of the past year) to the lowest price and the price of the previous day. The first four columns show the prices as they have been and the other columns provide information about the previous trading day, such as opening price, highest and lowest price and the closing price.

The listed companies

Then you will see a column with names in the table such as ABN, Aegon and so on. To the right of these names you will see columns with information: number of shares traded, number of shares traded on average, dividend yield, total return, price/earnings ratio. The total return indicates what the share has yielded in the past year.

Bonds

Bonds are debt securities and are part of the investment options. There are many bonds in circulation from many capital seekers, such as the government, banks, insurance companies, mortgage providers, but also healthcare and industry. Bond prices are also reported daily in the newspapers. The financial newspaper provides more detailed information about this than other newspapers. In the overview you will see the funds listed, stating: year of issue and year of redemption. The interest and rates are stated there, as are the effective returns. The effective returns have been calculated based on daily rates.

Options

Not all newspapers provide extensive information about the prices of the traded options. Highest and lowest prices of the day are listed as well as the bid and ask prices. But it is also possible that only the closing price is stated. Information about turnover per option contract is interesting, if the turnover per option contract shows extremes, it may be that a party is hedging itself and that a news event is imminent.

Financial futures market

In some newspapers you can read prices of contracts on the financial futures market. A small selection has been made because the daily assignment takes up a lot of space. The most important indices of the foreign stock exchanges are listed in separate columns. The financial newspaper provides information about the rates charged by banks on deposits (interbank deposits).