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Have you ever been watching the CNBC or Bloomberg TV Channels, and seen these letters and numbers scrolling across the screen? These are the investment ticker line, which provides updates on their daily trading status and performance.
In the early ages of the stock market, stock trades were recorded and run through a ticker tape system. This tape was placed on a continuously rolling reel, and detailed the trades of the stock exchange in any given day. For example, most of the brokers who traded at the New York Stock Exchange tried to get offices near the ticker tape to get a steady supply of trade information.
Nowadays, all trades are listed in a digital format so brokers and individuals can check how something is doing at any time.
In the video below, we explain all about the investment tickers running across your TV and what that means for your investment goals. Feel free to reach out to our team if you have other questions about investment tickers. We're happy to help.
What is it?
What you see on TV isn’t a recap of each individual trade, but an overview of all of the trades in a given day. If you are looking at a particular stock or market and it is highlighted with green text, then that stock has increased in price. If it is highlighted with red text, it means that stock has declined in price.
How Do You Read it?
There are a number of different items that are listed, but the main parts are:
- The symbols, which are listed with uppercase letters and tell you what stock or market index is being reported
- A number which shows the change in the price of one share of that stock or market
- A percentage which shows the total increase of that stock or market in that day
For example, if we are looking for how Apple has performed in a given day, you could see something like this: AAPL +1.34 (0.72%). This means that at this point throughout the day, Apple’s stock price is up $1.34 (per share), which is a total increase of 0.72% since the yesterday's close.
Why do You Care and How Does It Affect You?
If you are someone who likes to watch stocks, or particular markets, then the aforementioned sources are a great way to get updated information. However, keep in mind that the market goes up and down every day. Some days better or worse than others. Please don’t let one day’s performance sway your investing goals, because you could end up making a decision that may negatively affect your investment accounts.