A Guide On How To Read Stock Ticker

By Jenny Taylor

If one is into playing stocks in the stock exchange, then he is probably already very familiar with the tool of the system known as the stock ticker. These tools are used because they are the ones that will give the players the necessary information about the companies that they are investing in or will invest in. Of course if one is a beginner, then the first thing he should learn is how to understand these kinds of devices because he will be making use of them the whole time.

As stated above, these tickers can be found in all of the stock exchanges of every country so that investors may monitor their stocks. However, they can also be found in many other different places as well. They can also be found on the internet, on the television, in the newspaper, and in some places outdoors where they show it.

Now when trying to understand or read this handy device, it is best to know of the parts first. The first part that would show up would usually be the company name which would usually be shortened into three letters. If one does not know which abbreviations represent the company, then he may find them out in the internet or in the papers.

These tickers would also show which stocks are of class A and of class B. For those who do not know the difference between stocks that are of class A and of class B, the only difference would be in the voting rights of the stockholders. The stockholders of the class A stocks will typically have more voting rights than those of the class B ones.

Also shown on the device would be the current prices of the stocks. Usually, most tickers would show the highest price and the lowest price that the company has reached during the day as well as the opening price. At the end of the day, the ticker will be able to show what the current price is and what the closing price of a company is.

Now when it comes to the prices, there usually are symbols and colors that one must take note of. If the price of a certain company has gone up, then the text is usually in green and there is an upward arrow beside the company name. If the price has gone down, the font color is usually red and there is a downward arrow beside the company name instead.

Aside from the prices, the ticker will also show how many shares were last sold and at what price. For example, a certain company might have sold a total of ten thousand shares at around fifteen dollars. The device will also be able to flash this type of information to the stockholders who are looking at the ticker at the very moment.

So if one would want to go into trading stocks, then he would need to make friends with the stock ticker. He must know how this device works in and out because he will be looking at it almost all the time. It is from this device that he will be getting valuable information.

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