A Stock Ticker Gives A Snapshot Of Trading In A Given Company
Viewers often come across rolling numbers at the bottom of the TV screen while viewing a program in channels like the CNBC or CNNfn. These numbers rolling at the bottom of the TV screen are stock tickers. This is a technology that was invented in 1980s and has progressed from strength to strength thereafter.
Before the advent of the electronic media, stock tickers were generated by tape machines. The term 'ticker' came from the ticking noise of the tape machine, as the tape came out of the machine. The first stock ticker machine was invented in the year 1867, and this ticker was printed by a mechanical device. Long distance transmission of this stock information took place over telegraph wiring. At first, the ticker used the symbols of Morse code as a medium of transmission, and these were then hand delivered, having been translated into written or verbal messages.
A typical stock ticker will have the ticker symbol which denotes the name of the Company, the shares traded, price traded, change of direction if any, and change of the stock value in the process. Ticker symbols are the unique characters used to identify a particular company, and it differs for each company or organisational unit. Shares traded are the volume of trade being quoted. It follows a specific pattern for the abbreviations. These are K for 1000, M for one million, and B for one thousand million. The Price traded refers to price per share for the particular trade. Change direction indicates as to whether the price was higher or lower than the closing price of the previous day. Change amount is the difference in price from the closing price of the previous day.
For example, NTPS can be the abbreviation for a company name. The Shares Trade could be M that denotes one million. Price traded could be £65 per share. Change direction could be upwards denoting that the present price is higher than the closing price of the previous day which was £62. The Change amount is £3, which is the difference between the present price and closing price of the previous day. Colours are used on many tickers. These colors are used as distinguishing marks for the prices at which the stocks are traded. The colour code used by most channels is uniform in nature. Green colour is the indicator of the fact that the stock is trading higher than the closing price of previous day, while the Red indicates that the stock is trading at lower. Blue or White colour indicates that the stock price has maintained an equilibrium and has not fluctuated. Stock trading is a huge market. Over ten thousand different stocks are transacted every day in the market. Therefore, it is near impossible to report each and every of them on the ticker tape. The priority sectors among the trades are selected for using the ticker tape. The volume, trading activity, price changes and the popularity of the stock is taken into consideration for the ticker display. How widely a stock is held is one of the main criteria for this. Different data tables help the commercial organisations and traders all over the world to have sufficient information and data, relating to business transactions. Stock ticker is one of such data tables. In taking a decision on trading a stock, the stock ticker has enough information to influence such decisions.
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