Stock Market Ticker Tape

The stock market ticker tape is, now, awill see streaming stock market ticker symbols going
computerized unit that relays information about aacross the bottom of the TV screen. These can be
stock's trading activity to investors around the world.tricky to understand unless you know what they are
The stock market ticker tape's information includesall about; how to read the symbolic language.
the stocks' symbol on the exchanges, the latest priceInvestopedia comments, "Stock symbols are the
per share, and its trading volume. Beforemost recognized type of ticker symbol. Stocks listed
computerized methods, stock market ticker symbolsand traded on U.S. exchanges such as the NYSE have
were printed out on a thin piece of paper thatsymbols with up to three letters. Nasdaq-listed stocks
continuously streamed out of a ticker-tape machine.have four-letter symbols. Ticker symbols for options
The stock ticker-tape machine was invented in 1867are structured to represent the underlying stock
in the aftermath of the development of theticker they are based on and also their expiration
telegraph machine. In those days, "pad shovers"date and contract type (either a put or a call option).
were employed to feed the tape to brokers in theirMutual fund ticker symbols are usually alphanumeric
offices; brokers would set up offices as near asand end with the letter X to differentiate them from
possible to the New York Stock Exchange, etc, sostock symbols."
that they could get the feeds via wire as quickly as"Ticker" comes from the conceptual word of "tick",
possible. With globalization and computers this sort ofwhich is any activity of a stock whether it be up or
setup is clearly no longer needed.down. A stock market ticker symbol readout will
Stock market ticker symbols are the letters (once ininclude, in order from left to right: the unique call
a while also numbers) used to denote a particularletters of a specific security; the volume or number
security that is being traded publicly and/or on stockof shares traded (K = 1,000, M = 1,000,000 and B =
exchanges. This symbol is chosen by the company1,000,000,000); the last bid price for that stock,
when it begins issuing shares for public trading, andwhich is considered its price until there is a new bid;
it's what is used to track stock activity and place buyan up- or down- arrow that indicates if the stock's
or sell orders by investors. These brief symbols areprice is down or up from where it started the trading
necessary to streamline the vast amount of activityday; and the change amount, or the difference in
information that flows through stock exchanges onprice from the previous trading day's closing price.
every business day. Without the stock market tickerOnce you know what you are looking at and looking
symbols, confusion and turpitude would reign in thefor, the stock market ticker symbols become easy
stock market.to read and bring you a wealth of information you
People who tune into TV shows like MSNBC Businessneed if you are going to successfully trade in stocks.