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 High

What it is:

A record high is the highest price a security achieves in a given time period.

How it works (Example):

Let's look at this random chart for Cisco Systems (CSCO). Note the jagged line, which reflects the stock price. For this period, the record high is approximately $82. 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 highs usually correspond with good news about and more interest in a company. Additionally, they often trigger considerable buying volume, which can drive a stock price even higher. Accordingly, many traders are keenly aware of which stocks are approaching record highs.