Definition
TAPE refers to multiple services and mediums, including:
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Service that reports prices and size of transactions on major exchanges: This is often called “ticker tape,” owing to the sound made by the historical ticker machines that printed the data on a continuous tape before these transactions were reported electronically.
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Newswire services from providers like Dow Jones: These services distribute financial news and other information to subscribers, including media outlets and financial institutions.
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Magnetic computer storage medium: Tape is also a type of magnetic storage used for backing up large amounts of data. It’s known for its durability and cost-effectiveness in storing voluminous data, particularly in archival settings.
Examples
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Stock Market Ticker Tape: A constant stream of data reporting the prices and volume of trades occurring on stock exchanges, displayed electronically.
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Dow Jones News Wire: A real-time news service providing updates on financial markets, economy, and other business news.
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Magnetic Data Tape: Used by organizations to archive important data, often seen in large data centers where long-term data storage is necessary.
Frequently Asked Questions (FAQs)
What is a ticker tape in the stock market?
Ticker tape in the stock market is a service that provides a continuous display of stock prices and transaction sizes. Historically, information was printed on a long, narrow strip of paper, making a ticking noise as it printed.
Who uses Dow Jones news services?
Dow Jones news services are utilized by financial professionals, media outlets, and other entities interested in real-time financial news and market data.
What are the advantages of magnetic tape storage?
Magnetic tape storage is durable, cost-effective, and suitable for the long-term archival of large data volumes. It offers reliability and a good cost per byte when compared to other storage media.
Stock Exchange: A marketplace where stocks, bonds, and other securities are bought and sold.
Transactional Data: Information recorded during financial transactions, such as price, volume, and terms of trade.
News Wire: A service providing real-time news to subscribers, often including financial markets data.
Archival Storage: Long-term storage of data for future reference, often using durable media like magnetic tape.
Online References to Online Resources
Suggested Books for Further Studies
- “The Efficient Market Hypothesis and Its Critics” by Burton G. Malkiel
- “News and Market Impact” by Terence Barker
- “Modern Magnetic Tape Data Storage Methodologies” by John D. Landis
Fundamentals of TAPE: Financial and Data Storage Basics Quiz
### What does ticker tape originally refer to in the context of financial markets?
- [ ] A type of celebration
- [ ] A marketing tool
- [x] A device for reporting stock prices
- [ ] None of the above
> **Explanation:** Ticker tape originally refers to a device used for reporting stock prices and transaction sizes by printing on a continuous strip of paper, making a ticking sound during operation.
### What is one of the modern-day equivalents of ticker tape in stock markets?
- [x] Electronic display board
- [ ] Physical printout
- [ ] Handwritten notes
- [ ] Magazine publications
> **Explanation:** The modern-day equivalent of ticker tape in stock markets is an electronic display that shows real-time stock prices and trade volumes.
### What significant financial news service ensures the instant dissemination of market updates?
- [ ] Physical newspapers
- [x] Dow Jones News Wires
- [ ] Infomercials
- [ ] Email newsletters
> **Explanation:** Dow Jones News Wires is a well-known service that ensures the instant dissemination of financial and market updates to its subscribers.
### Which media type is known for its cost-effectiveness and long-term data storage capabilities?
- [ ] Solid-state drives
- [ ] Optical discs
- [x] Magnetic tape
- [ ] Cloud storage
> **Explanation:** Magnetic tape is renowned for its cost-effectiveness and long-term data storage capabilities, making it ideal for archiving large amounts of data.
### What term describes the durable, long-term storage solution offered by magnetic tape?
- [x] Archival storage
- [ ] Real-time storage
- [ ] Temporary storage
- [ ] Volatile storage
> **Explanation:** The term "archival storage" describes the durable, long-term data storage solution offered by magnetic tape, used for keeping data safe over long periods.
### How did ticker tape machines communicate transaction information historically?
- [x] By printing on a narrow strip of paper
- [ ] Via radio broadcasts
- [ ] Through computer screens
- [ ] Using smoke signals
> **Explanation:** Historically, ticker tape machines communicated transaction information by printing on a narrow strip of paper, which produced a ticking sound, hence the name.
### Who primarily uses Dow Jones news services?
- [ ] Retail shoppers
- [ ] Sports enthusiasts
- [x] Financial professionals
- [ ] Artists
> **Explanation:** Financial professionals, media outlets, and others interested in up-to-date financial market information primarily use Dow Jones news services.
### What is a key reason for still using magnetic tape for data storage?
- [ ] It is faster than SSD
- [ ] It is read-only
- [x] It is durable and cost-effective for archival purposes
- [ ] It requires complex maintenance
> **Explanation:** Magnetic tape is still used for data storage because it is durable and cost-effective for large-scale archival purposes, ensuring data longevity and security.
### What kind of data is typically reported through a news wire service?
- [x] Financial market data
- [ ] Personal social updates
- [ ] Video game scores
- [ ] Restaurant menus
> **Explanation:** A news wire service typically reports financial market data, along with other important real-time news updates.
### In stock market terminology, what does "transaction size" refer to?
- [ ] The physical dimensions of a stock certificate
- [x] The number of shares traded in a transaction
- [ ] The size of the stock market building
- [ ] The budget of the trader
> **Explanation:** In stock market terminology, "transaction size" refers to the number of shares traded in a particular transaction.
Thank you for exploring the multifaceted term “TAPE” and tackling this informative quiz. Keep enhancing your financial and technical knowledge!
