Why Do Companies Offer Free Online Stock Quotes?


Quick Answer

Companies offer free stock quotes so that analysts and investors can equate share price to business value, as listed by Chron Small Business. This approach helps investors determine if a company is undervalued or overvalued.

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Full Answer

Yahoo Finance offers free stock quotes after a visitor types in a company name or ticker symbol into the search box. This feature then provides data relating to key information, company statistics, interactive charts and industry competitors. Additional financial metrics including trading range, price earnings ratio and market capitalization are also available, as of 2015. This information changes daily in accordance with fluctuations of the stock price.

The availability of stock market information fosters market trading. Investors use the asset-based approach, the market approach and the income approach to determine a value of a company, as listed by Chron Small Business. This value is then compared to the associated stock price and financial statements. Once an analysis has been put together, an investor can use all available information to establish a position. A position can either be a long position or a short position, as noted by the U.S. Securities and Exchange Commission. A long position involves taking ownership of the security, whereas a short position involves selling a borrowed security in anticipation of a decrease in stock price.

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