Define Stock Market Ticker Tape

by Gilbert Stockton

The stock market ticker tape is, now, a computerized unit that relays information about a stock’s trading activity to investors around the world. The stock market ticker tape’s information includes the stocks’ symbol on the exchanges, the latest price per share, and its trading volume. Before computerized methods, stock market ticker symbols were printed out on a thin piece of paper that continuously streamed out of a ticker-tape machine.

The stock ticker tape machine created in 1867 was developed after the telegraph machine. It people feed the tape to brokers in their offices. The closer you were the sooner you could get the information. That is why brokers would set up offices as close as possible to the New York Stock Exchange. Technology and the computer has changed all this.

When a new company goes public for trading they pick letters or symbols for their stock symbol. These symbols help businesses and investors avoid confusion and allow for public trading. The symbols help to avoid confusion from investors.

MSN and other tv shows run the ticker tape at the bottom for investors. It is difficult to read at first but as soon as you know what companies you wish to follow becomes a lot easier.

Stocks that are on the NYSE are denoted by three letters. Stocks traded on the Nasdaq are denoted by 4 letters. Mutual funds use letters and numbers to differentiate their symbols.

Ticker also comes from the actual conceptual word of tick. It means the stock ticks up or down when there is activity.

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