Ticker tape

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Ticker tape was a technology that revolutionized the way stock market information was transmitted and received in the late 19th and early 20th centuries. It consisted of a thin paper strip that ran through a machine called a ticker, which printed stock transaction information in Morse code. This invention was crucial for finance and trading, providing real-time data to investors and traders across the country.

History

The ticker tape machine was invented by Edward Calahan, an employee of the American Telegraph Company, in 1867. However, it was Thomas Edison who later improved upon the design, making it more reliable and efficient for widespread use. The name "ticker" comes from the sound the machine made as it printed. Ticker tape machines became ubiquitous in brokerage firms and financial institutions, allowing for the rapid dissemination of stock prices and financial news.

Function

The primary function of the ticker tape machine was to provide continuous updates on the prices of stocks on the New York Stock Exchange (NYSE). Each stock transaction was encoded in Morse code and transmitted over telegraph lines to ticker tape machines located in various offices and trading floors. The machines would then decode the information and print it on the paper tape. This allowed traders to make informed decisions based on the most current market data.

Impact on Trading and Communication

Before the advent of electronic and digital technologies, ticker tape was the fastest method of communication for financial information. It enabled a more dynamic and responsive trading environment, as investors could react to market changes in near real-time. The ticker tape system also laid the groundwork for modern electronic trading and financial information dissemination technologies.

Ticker Tape Parades

The term "ticker tape parade" originated from the spontaneous celebrations in New York City where people threw ticker tape from office buildings to celebrate significant events, such as the return of astronauts from space missions or military victories. These parades became a symbol of public celebration and achievement.

Decline and Legacy

With the advent of electronic displays and computerized trading systems in the 1960s, the use of ticker tape machines declined. Today, digital platforms provide financial data more efficiently and in greater detail. However, the concept of "ticker" lives on in the scrolling electronic tickers used on news and financial websites, as well as on television networks to display stock prices and financial news.

See Also

• Stock market
• Telegraphy
• Thomas Edison
• New York Stock Exchange