Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Record Low

What it is:

A record low is the lowest price a security achieves in a given time period.
 

How it works (Example):

For example, let's look at this random chart for Cicso Systems (CSCO). Note the jagged line, which reflects the stock price. For this period, the record low is approximately $23 (at the beginning of the chart). Note that a record can relate to a year, a month, a week, or even just one trading day, so it is important to understand the period of time to which a record corresponds.

Why it Matters:

Record lows usually correspond with bad news about and less interest in a company. Additionally, they often trigger considerable selling volume, which can drive a stock price even lower. Accordingly, many traders are keenly aware of which stocks are approaching record highs and lows.