Why does the peace sign stand for peace?

The peace sign is actually the symbol of nuclear disarmament. The symbol is made up of 2 "semaphoric" letters. ("N" and "D".) The meaning was later translated to mean "peace".

For more information please visit the following site: http://en.wikipedia.org/wiki/Peace_symbol

EDIT: It also is the symbol of Emperor Nero. He killed many christians. http://www.Jesus-is-savior.com/False%20Religions/Wicca%20&%20Witchcraft/peace_sign.htm check that site

The peace sign also has meaning for the Nazi party and the Occult. "Known as the 'peace sign' throughout the 1960's and into the present day, this symbol is the Teutonic rune of death. 1950's peace advocate Gerald Holtom may have been commissioned by communist sympathiser Bertrand Russell to design a symbol to unite leftist peace marchers in 1958. It is clear that either Holtom or Russell deemed the Teutonic (Neronic) cross as the appropriate symbol for their cause. Not only was it ordered by Hitler's National Socialists that it must appear on German death notices, but it was part of the official inscription prescribed for the gravestones of Nazi officers of the dread SS. The symbol suited Nazi emphasis on pagan mysticism.''

The peace symbol (also called the "broken cross," "crow's foot," "witch's foot," "Nero Cross," "sign of the 'broken Jew,'" and the "symbol of the 'anti-Christ''') is actually a cross with the arms broken. It also signifies the "gesture of despair," and the "death of man.'' With the arms of the cross raised in an upright position, it is "a Pythagorean emblem of the course of life, in the form of a rising path with fork roads to Good and Evil.'' It also signifies fertility, but with the arms pointing downward, it denotes evil and death.

"In fact, the inverted 'Man-rune'--the figure encircled in the common sign which the Communists tell us means 'peace'--has for centuries been a favourite sign of Satanists.'' Throughout the last 2,000 years this symbol has designated hatred of Christians. Nero, who despised Christians, crucified the Apostle Peter on a cross head downward. This hideous event resembled the Teutonic cross and became a popular pagan insignia of the day. Thereafter, this sign became known as the 'Neronic cross.'

Anton LaVey, the founder of the Church of Satan, used the peace symbol as the backdrop for his altar.

One former witch makes the following comment about the peace symbol: "It is an ancient and powerful symbol of Antichrist. During the dark ages it was used in Druid Witchcraft and by Satanists of all sorts during the initiation of a new member to their order. They would draw the magic circle and give the initiate a cross. The initiate would then lift the cross and turn it upside down. He would then renounce Christianity in all three dimensions (sic) of time (past, present and future) and break the horizontal pieces downward forming the design of the 'Raven's Foot.' This ugly symbol is nothing short of blasphemy against the Holy Ghost. For one to wear or display this symbol is to announce either knowingly or unknowingly that you have rejected Christ. Remember, symbolism is a picture language, and a picture is worth a thousand Words.''

Jesus-is-savior.com/False Religions/.../peace_sign.htm

Most of what is in this answer after the first part about nuclear disarmament is highly suspect. Funny that the wikipedia page says nothing of Nero and only mentions some radical christians CLAIMING it has ties to the Nazis. This is all likey drummed up by zealotous simpletons who have nothing better to do with their time.