The stock ticker was originally a machine that used telegraph technology to transmit stock prices on paper, but now it is a screen of simulated ticker. Thomas Edison was influential in developing the technology, and modern tickers include customizable tabs for personal devices. The ticker symbol, volume, price, and changes are displayed, with colors indicating whether the stock is higher or lower. Only selected trades and stocks are displayed due to the high volume of transactions.
A stock ticker is a means by which stock prices are transmitted in real time to investors. At one time, a stock ticker was a machine that used telegraph technology to transmit this information on paper or “ticker tape,” but with the advent of television and computers, today’s stock ticker is a screen of simulated ticker.
Thomas Edison was arguably the most influential inventor of stock ticker technology, but the invention began in 1867 with the SS Law gold indicator. The Gold Indicator was used by the Gold Exchange on Wall Street. The machine displayed the current price of gold on two sides: one faced the street for customers to see, and the other faced the merchants inside.
Shortly after Law’s invention came Edward A. Calahan’s stock printer. This machine was the first telegraph printing machine to print stock prices on a tape. The sound of the machine earned it the name of the stock ticker, and it got stuck.
Over the next century, Thomas Edison and other ingenious inventors developed the technology that revolutionized the way investors monitored their stocks. The last mechanical ticker was introduced in 1960, but was eventually superseded by modern computer-operated tickers with electronic displays. Now, in addition to the continuous stream of stock information from the TV news channel, stock tabs can be customized for your personal computer, PDA or cell phone.
The main components of the stock ticker include the following: the ticker symbol, which is the symbol for the stock; the volume, or how many shares have been traded that day; and the price at which the shares trade. The next amount listed is how much the price has changed since it last traded, followed by an up or down arrow indicating whether it traded up or down. Last Amount is the amount by which the price changed since the last close.
Colors are another component of many stock tickers. In general, green is used when the stock is higher than the last close and red if it is lower. Blue or white is used if the stock price has not changed. Of course, due to the fact that millions of transactions on thousands of stocks take place daily, a stock ticker cannot keep up. Because of this, only selected trades and stocks are displayed in a stock ticker.
The advent of modern technology has replaced the literal leg work that was once so crucial to the stock market, while giving investors around the world the information they need to make informed trades.
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