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Thursday, July 9, 2009

Stock Market Ticker Tape Definition

By Gilbert Stockton

The origination of the stock ticker tape name came from the fact that long ago the stock market symbols were printed out on a piece of paper from a ticker tape machine. Now this computerized unit gives information on the stock symbol, price, and volume.

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.

Stock market ticker symbols are the letters (once in a while also numbers) used to denote a particular security that is being traded publicly and/or on stock exchanges. This symbol is chosen by the company when it begins issuing shares for public trading, and it's what is used to track stock activity and place buy or sell orders by investors. These brief symbols are necessary to streamline the vast amount of activity information that flows through stock exchanges on every business day. Without the stock market ticker symbols, confusion and turpitude would reign in the stock market.

There are many shows on TV that run the ticker tape across the bottom of the screen like MSNBC. This symbolic language can be difficult at first but becomes easier once you start playing the market more.

Stocks symbols are one of the most recognized form of symbols. Stocks on the NYSE have three letters. Stocks on the Nasdaq have 4 letters. Mutual funds have even more.

Ticker also means that when a stock goes up or down it ticks in a direction. This shows whether the stock is moving up in price or down in price. - 23218

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