Historical Prices and Valuation of Stocks
The value of a firm’s shares reflect the overall investor opinion of a company’s future performance. For example, If AAPL traded at $122.50, that means investors are valuing the future potential of the corporation at that price, and not on how its performance was in the last few quarters. Investors primary concern is how Apple Inc will perform in the next 5 years rather than how it performed in the last few years. On Paper, the price of a company’s shares reflect all variables, also known as Efficient Market Hypothesis.
We will use Shares interchangeably with stocks. Buying stocks of a company is essentially buying a stake in the corporation. For the most part, when you shares of a firm, your ownership in that firm is very low. Nonetheless, once an investor buys shares of a firm, he or she has a small ownership in the corporation.
Historical share price information can help investors guage how a company’s share reacted when it meet or exceeded their expectations. Share price history can tell you how a firm’s stock will react when it is a target of a lawsuit or an acquisition. Although each situation would be different, whether it is a merger or a new product release, knowledge of a company stock’s historical performance can help you in your investing decisions.
To find out old stock quotes, you can have a service that provides you with raw data which displays corporation’s share movements for a specified period of time, or you can have a service that provides you detailed historical stock market price movements along with news events that caused it to trend that particular direction. The service that provides detailed movements is a better alternative as it gives information that directly affects the share price.
One of the services that I found useful was “End of Data”, I found the service to provide about 15 years of past share quotes, although that costs money. Alternatively, Google Financial Website is also an excellent place where you can find information about a firm’s stock, although the news events feature is quite limited.
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