Stock Screener

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DEFINITION of 'Stock Screener'

A tool that investors and traders can use to filter stocks based on user-defined metrics. Stock screeners are offered on many websites and trading platforms, and they allow users to select trading instruments that fit a certain profile set of criteria. For example, users are able to screen for stocks by data including price, market capitalization, P/E ratio, dividend yield and 52-week price change percentage, average volume and average five-year return on investment (ROI). Some trading platforms and software allow users to screen using technical indicator data. For example, one could filter for stocks that are trading above their 200-day moving average or whose Relative Strength Index (RSI) values are between a specified range.

BREAKING DOWN 'Stock Screener'

Investors can find trading instruments that meet a specified set of criteria by using a stock screening tool. Investors use screeners to find stocks that are poised to perform well over time. Active traders may use stock screening tools to find high probability set-ups for short-term positions. Users can enter a varying number of filters; as more filters are applied, fewer stocks will be displayed on the screener. Stock screeners allow investors and traders to analyze hundreds of stocks in a short period of time, making it possible to weed out those stocks that don't meet the user's requirements and focus on the instruments that are within the user-defined metrics.

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RELATED FAQS
  1. What are the main differences between Yahoo! Stocks Screener and Google Stock Screener?

    Google Finance and Yahoo Finance each offer a free stock screener through their respective search-engine interfaces. The ... Read Full Answer >>
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    The compound annual growth rate, or CAGR for short, measures the return on an investment over a certain period of time. Below ... Read Full Answer >>
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    Generally, penny stocks are traded through the use of the Over the Counter Bulletin Board (OTCBB) and through pink sheets. ... Read Full Answer >>
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    Some penny stocks, those using the definition of trading for less than $5 per share, are traded on regular exchanges such ... Read Full Answer >>
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