Friday, April 18, 2014

About the Stock Market Ticker

by Guest Poster

People are interested in learning about investing and one place they turn to is the stock market for dummies books. They might have gotten interested because they see the stock ticker on their TV go by and wonder what it is. To many people, the stock market ticker is a strange yet interesting scrawl that piques their curiosity. .

In fact, it’s a very simple concept; the ticker is a way to track the most recent price offered for a stock. Like any industry, the stock market has its own jargon complete with special symbols and odd figures that you see on the ticker, so learning what these stand for will help you read and use the ticker. The symbols, usually a letter or group of letters, represent the name of a company, while the numbers indicate the number of shares traded and the arrows indicate whether the stock is trading up or down.

Since the ticker was designed to impart information quickly, company names had to be shortened in order to fit. In most cases, it’s fairly easy to determine which symbol represents which company since the two are usually similar.

You can also determine whether a particular stock is in vogue right now or not by the number of shares traded. The arrows indicate whether a stock has increased or decreased in value and the number following the arrow indicates how much the value has changed over the trading day.

Sometimes the hardest part is simply figuring out on which market the stock trades. NASDAQ traded stocks, for example, always have a four-letter symbol.

If the stock you’re considering has three letters or less, then it’s market is the NYSE or the AMEX. Foreign companies are also represented in the market, and these are always a five-letter symbol with either a Y or F at the end.

The reason for the ticker’s unusual appearance can be found in its history. Thomas Edison’s telegraph, which was the inspiration for the stock market ticker, was also known as ticker tape for many years. Edison realized that traditional methods of reporting stock numbers were too slow, so he found a way to convert his telegraph into the stock ticker.

The electronic scrawl we see on our TVs has long replaced the old paper ticker, but the design is still based on Edison’s idea for quickly delivering stock information. The information contained on the ticker represents real time numbers and information about the companies that are traded on the markets.

Anyone who wants to trade on the stock market must be able to read and understand a stock market ticker. Penny stocks won’t be listed there though, and to get more information about them you should buy a penny stocks for dummies book. Being a successful trader is only possible if you follow the stock market tickers closely and learn from the information that they provide.

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