Telegraph and Stock Prices

About Telegraph and Stock Prices

The invention of the telegraph in 1844 revolutionized stock trading. Before the telegraph, price information between cities took days. The telegraph allowed near simultaneous information. New York prices reached Philadelphia, Boston, and Chicago within minutes. Stock tickers, invented in 1867, provided continuous price updates. The combination of telegraph and ticker transformed trading from local to national. Information that was once available only to floor traders became accessible to brokers nationwide. The telegraph also enabled faster settlement and clearing. The information advantage of physical proximity to exchanges eroded. This was the first of many technology revolutions that would eventually include the telephone, computer, and internet, each democratizing market access further.