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What is a Tape C Stock?

6347927034_395f68f9e7_bThe NASDAQ appears to be down and the problem reportedly has to do with Tape C stocks, but what are they?

The tape goes back to as early as the 1870s when stock prices were transmitted via telegraph. It was a paper slip that ran through a machine called a stock ticker. The ticker printed the stock symbol with the price and volume information. The tape was called a “ticker tape” because of the sound made by the stock ticker machine.

What we see running at the bottom of financial media outlets are simulated ticker tapes but work the same way.

But what is at play today are the Tape C securities. The origin of the word is the same but this type of tape is slightly different. There three types of tapes: Tape A, Tape B, and Tape C. Tape A and B handle NYSE and AMEX stocks and processed by the Consolidated Tape Association. (Which is why A and B are often called consolidated tapes.)

Tape C is all stocks listed on the NASDAQ exchange and are overseen by the OTC/UTP Operating Committee.

This is why NYSE stocks are still trading and NASDAQ stocks are not.

 

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