Historical stock data is the compilation of information about a stock's performance in the past, according to InvestorGuide. Such a compilation includes information such as high, low and closing prices; dividends paid to stockholders; earnings; and revenue growth. Investor commonly use this type of data to forecast future performance.
For example, investment analysts can acquire information about historical prices for any 10-year time period that they want to investigate, as Nasdaq explains. The default period for obtaining such information from Nasdaq's website about a stock's price opening, high, low and closing value is five days, but an analyst can obtain such information about a stock for a period up to 10 years by changing the time frame in the website's drop-down menu. The stock data for the chosen time period also includes comparisons to other groups of stocks, such as the Nasdaq Composite, Nasdaq-100 and the Standard & Poor's 100 indexes, and Nasdaq also previews the daily most-viewed historical quotes for the convenience of financial analysts. Investors and analysts rely heavily on historical data to predict current and future trends of a stock, taking in different bits of information to make conclusions. For example, one relationship commonly reviewed by investors to predict performance is the relationship between the stock price trend and the volume of trades.