What is Ticker Tape? Share Market Significance Explained

Last Updated: 23 Oct 2025

Have you ever wondered about the continuous display of stock price on a financial news channel or the ribbon of stock prices on major stock exchanges of the world? Ticker tape is even displayed in movies to portray the securities market.

They are widely used and globally accepted in the securities market. While most financial enthusiasts may have tracked the ticker tape at some point in their trading journey, very few know about the history of ticker tape, its significance, and quote priority.

What is ticker tape?

Let’s begin with the ticker tape meaning. Ticker tape is a ribbon that displays the price movement in individual stocks on a continuous, real-time basis. It also linearly disseminates price quotes and provides market information to investors. Today, the ticker tape is electronic, and a computer device is used to transmit information to investors around the world.

Evolution of Ticker Tape

Initially, stock prices were delivered through written or verbal messages. The time taken for distributing stock quotes was considerably high, whereas the span for which stock quotes were useful was very limited. Hence, stock quotes were not shared over long distances.

Ticker devices were introduced to reduce the turnaround time associated with written and verbal messages. It also allowed for faster and more precise sales. The ticker ran continuously, and updates to stock prices were much more effective. Overall, trading became more time-sensitive.

Ticker tapes appeared as a byproduct of ticker devices that printed a series of ticker symbols, including the company’s name and information related to its price. The original ticker tape system was based on telegraph wires. The output was produced on a thin strip of paper called ticker tape. The word ticker is derived from the distinct tapping noise made by the machines during printing.

However, there was a time gap between the execution of a trade and the communication of the trading price on the ticker tape. Brokers whose offices were closer to the stock exchanges received the data sooner than brokers located further away.

Hence, ticker machines are obsolete and have been replaced by computer networks and televisions. Simulated ticker displays are used to publish data in real-time. These up-to-the-second price and volume figures are now displayed on websites, television news channels, and financial wires.

History of Ticker Tape

The history of the stock price ticker tape dates back to 1867, when the prototype of a telegraphic ticker tape was created by Edward Calahan. In 1871, Thomas Edison improved upon and patented Calahan’s invention. The original system consisted of specialised keyboards that converted data relating to stocks into Morse code. It was then read by the machine on the other end.

In 1930 and 1964, revised versions of ticker tape machines were introduced. The processing time of these machines was much faster than that of their predecessors. However, there was still a 15–20-minute delay between the transaction time and the time it was recorded. During the late 19th century, brokers held offices close to the exchange to ensure the latest transaction data was available with the least amount of delay.

In 1996, a real-time electronic ticker was launched. Transaction details were updated up to the minute and were delivered by messengers who ran a circuit between the trading floor and the brokerage houses. Currently, quotes are continuously scrolling throughout the trading day, showing current or slightly delayed data.

Understanding Ticker Tape in Share Markets

Typically, a ticker tape displays the following items:

• Stock Symbol – Each entry on the ticker consists of a stock symbol that denotes the company whose stock has been traded. The stock symbol is a unique code.
• Volume – The number of shares being traded.
• Share Price – The price per share at which a trade is executed.
• Visual Cue – Generally, a triangle is displayed as a visual cue. It depicts whether the trading price is above or below the closing price of the previous day.
• Delta – This is the difference between the trading price and the closing price of the previous day.
• Colour-Coded – Green is used if the trading price is higher than the closing price of the previous day, whereas red indicates that the trading price is lower than the closing price of the previous day. Blue is used in case the trading price is the same as the closing price of the previous day.
• Decimals – Trading prices are displayed in decimals.

The primary purpose of ticker tape is to display the current market price of a security, viz-a-viz the closing price at the end of the previous trading day.

Additionally, the constituents of ticker tape assist investors in gauging the overall market sentiment at that time. Ticker tape data is used for technical analysis, predicting future price movements and analysing stock behaviour.

Ticker tape is especially useful for those who are beginners in the stock market since it constantly displays information about the most active securities.

Quote Priority

In India, there are more than 1300 securities that are available for trading on the National Stock Exchange. Since there is limited space, the priority for the display of stock price gains is significant.

Data on the ticker tape is prioritised by the most active stocks. Usually, the volume of shares is considered while determining the priority for the display of prices. Large price movements, widely held stocks, stocks with headlines in the news, and large price movers are contributing factors that may lead to active trading.

How Does Ticker Tape Work

A ticker tape is a mechanism for providing investors with pertinent information about stock trades in real time. It refreshes in real-time, so a trader can see the price movement, trade volume and percent change right away.

This process runs through a few basic steps:

• Trade Transaction: Each time a stock is purchased or sold on the exchange, details of that trade (e.g., stock symbol, price and number of shares) are recorded.
• Transmission: This information is immediately sent to the ticker system, which processes and prepares it for display.
• Display on Screen: The ticker shows:
  • Ticker Symbol – short code for the company (e.g., TCS for Tata Consultancy Services).
  • Last Traded Price – the most recent buying or selling price.
  • Price Change – difference compared to the previous day’s close (green for gains, red for losses).
  • Percentage Change – a quick indicator of how much the stock has risen or fallen.
  • Volume – the number of shares traded in that transaction.

Since there are thousands of trades in a second, the ticker tape scrolls constantly, pushing out older information with new trades. This scroll feature guarantees that you are never out of the loop in even the busiest market.

For investors and traders, the ticker tape serves as a short-form glimpse of market sentiment. Just by looking at it, they can get an idea if a stock is building strength, losing value or trading heavily. Thus, it is an indispensable tool for efficient and informed investment.

How can I use Ticker Tape to invest in stocks?

Ticker Tape is a helpful tool for stock investing. It provides market analysis, financial metrics, and real-time data to make informed decisions. You can track stock performance, analyse trends, and use various financial indicators to choose stocks aligned with your investment goals.

Reading the Ticker Tape

To understand how to read the ticker tape, let’s consider the following example – PELT 10K @ 1890 ^ 100

1. PELT – PELT refers to the ticker symbol and is used to identify the company whose stock is being traded.
2. 10K – 10K refers to the volume of trade being reported. Typically, K = 1000, M = 1 million and B = 1 billion. In this case, ten thousand shares are being traded.
3. @ 1890 – Rs. 1890 represents the price per share for a particular trade.
4. ^ 100 – The change in price from the previous day’s close is depicted. The change in direction indicates whether the stock is trading higher or lower than the previous day’s closing price. In this case, the symbol indicates that the trading price is higher than the closing price of the previous day by Rs. 100.

Importance and Uses of Ticker Tape

The stock market ticker tape is more than numbers scrolling across the screen. It’s an essential tool for investors and traders. It allows monitoring real-time stock price and other market information for forward-looking investment.

Importance of Ticker Tape

• Live Market Insight: It provides real-time opening and closing prices along with volumes and market direction.
• Market Transparency: Each trade is publicly visible, ensuring that honest market activity is indisputable.
• Investor Confidence: Investors feel more secure and confident with real-time updates.

Uses of Ticker Tape

• Tracking Stock Performance: Investors monitor how specific stocks are moving compared to the previous day.
• Spotting Trends: A quick check will reveal whether the market is generally up (bullish) or down (bearish).
• Making Trading Decisions: Day traders use it to pounce on buy and sell opportunities.
• Comparing Companies: By following multiple ticker symbols, investors can see which sectors or firms are performing better.
• Studying Market Sentiment: Rapid increases or decreases in volume and price can indicate the market’s sentiment towards news, releases or events.

Conclusion

The advent of mobile apps and financial websites has reduced the dependency on ticker tapes considerably. Stock prices, trading volumes, and related details can be tracked efficiently at an individual scrip level. It is worthwhile to note that it is close to impossible to see the exact price and trading volume at the precise moment of trading. However, ticker tapes continue to be displayed, and many believe they can provide significant insight and provide a general picture of the current activity of a stock.

Frequently Asked Questions

Q1. Can I customise the information displayed on a ticker tape?

Yes, ticker tapes can be customised to show stock prices, news, and other updates you prefer. This ensures you only see the information that matters most to you.

Q2. Where can I find a ticker tape for stock market updates?

Ticker tapes are available on financial websites, mobile apps, and TV channels. Platforms like Tickertape.in also provide real-time data and analysis tools.

Q3. What is Ticker Tape in the Share Market?

A ticker tape is a digital display that shows live stock prices and market updates. It helps traders and investors track market movements in real time.