If you are interested in investing in stocks, you will most certainly come across a stock ticker. But just what is a stock market ticker? It is important to be aware of this if you are to make good stock investment decisions.

Basically, a ticker is an up-to-date report on certain stocks, bonds or securities. It is updated in real time for so long as the trading session on the stock exchange markets continue. Whenever a ticker 'ticks', it means that there has been a change in the price of the stock, whether the movement is up or down. The ticks are automatically displayed, together with a number of other pieces of data like volume. These are all information that investors need in order to understand what the conditions are for the market and specific stocks.

How Does a Stock Market Ticker Work?

Aside from knowing what is a stock market ticker, it is also important to understand how a ticker works and how you can use it to your benefit. A ticker will only show a certain number of stocks on it during a certain period. This is because there are literally thousands of stocks that can be traded. In most cases, you will only be able to see the stocks that have changed in price the most since the previous day, or the stocks that are current trading with the highest volumes. However, there are also some stock tickers that allow you to specify which stocks in particular would you want to look at. Naturally, this is vital if you are considering making an investment yourself.

If you switch on the news on a financial report, you will most likely see a stock ticker at the bottom of the screen, where it scrolls by. This ticker will show you the up-to-date, real time information on certain stocks. It also includes the ticker symbol, which is the code that represents a certain stock. This code is always one to four letters long. It will also show the volume for each transaction and the price. If the price has gone up since the closing value of the previous day, it will show a green up arrow. If, however, the price has dropped, it will show a red down arrow. Additionally, the ticker will show the net price change. This is depicted as either a percentage or as a dollar amount. If the price has remained the same, there is likely to be no arrow at all, or a gray arrow. The net price change and the ticker symbol may also appear in green (higher price) or red (lower price).

When trying to understand what is a stock market ticker, it is vital to know that stock tickers today are completely electronic. They show the market data with only the slightest of delay, effectively being shown in real time. They can be viewed on various financial networks, including television, but also on various trading platforms. On trading platforms, in particular, you will have the opportunity to customize the stocks you are able to see and they will run at the bottom of your screen.