How do stocks get published so quickly and how is it so incorruptible?
March 7th, 2008 | by admin |allan asked:
When I am reading my tv screen and I see that a particular company has “gone up” or “down”, where did that tv station or newspaper get the information so quickly to publish? Actually more specifically, how does all this information about pricing of stocks in general get reviewed and published so instantly? How does this happen and what system enables it to happen? How is it so incorruptible?
When I am reading my tv screen and I see that a particular company has “gone up” or “down”, where did that tv station or newspaper get the information so quickly to publish? Actually more specifically, how does all this information about pricing of stocks in general get reviewed and published so instantly? How does this happen and what system enables it to happen? How is it so incorruptible?
2 Responses to “How do stocks get published so quickly and how is it so incorruptible?”
By Ken C on Mar 7, 2008 | Reply
The prices quoted on TV are just the last trade on that particular stock on the exchange (NYSE, AMEX ect.) or NASDAQ they trade on. The last trade is reported via computer from the exchange. When you see it on TV the quotes (Prices Reported) may have up to a 15 minute delay.
So they are not pricing it themselves, they are just reporting what the last trade reported was.
Did that help???
By g_tastyfish on Mar 9, 2008 | Reply
The ‘Consolidated Tape’ is an electronic system that continually gathers price and other market data from different market centers. Some of these are electronic (such as ECN’s and crossing networks) and some is put in by hand (specialist on the floor of the NYSE and AMEX and third market broker dealers). Obviously the data is not incorruptible as some of it is entered by humans, but generally speaking it is quite accurate. Regulations require a trade reported by a person to be submitted within 30 seconds of a consummated trade. Sometimes you may notice a .sld after one of the reports, this is a trade that was reported out of sequence (outside the 30 second rule) These are monitored closely by the NASD and SEC market regulation and surveillance divisions and fines for habitually reporting late are quite steep, this tends to keep things in line.
You can subscribe to a feed that will allow you to see the real time tape, that is how TV stations and internet sites get the info so quickly. Many internet sites will have a subscription that is 15 to 20 minutes delayed – as the rates for these feeds and substantially cheaper than real time.