What is Stock Symbol?

They are also called stock tickers or ticker symbols. Some tickers have additional characters—these letters highlight features like asset class or trading restriction. The compositions and the number of characters present in each symbol vary between different stock exchanges.

Key Takeaways

  • A stock symbol is a code or abbreviation that denotes particular security listed on stock exchanges. It is an arrangement of alphabetic letters, numbers, or both—a unique identity for each company or security.It helps investors recognize security issued by a company. In addition, it facilitates placing orders and distinguishing between different asset classes.The term “ticker” originates from the sound made by the ticker tape machines. Ticker machines were used extensively in stock exchanges between 1867 and 1960.If a ticker name has an additional alphabet “E,” the stock is about to get delisted.

Stock Symbol Explained

The stock symbol is a unique combination of characters—letters, numbers, or both. It represents particular security belonging to a company. The company should be registered for trading over a stock exchange. The symbol can range from just a single character to even five characters. It is also referred to as a ticker or a ticker symbol. The term “ticker” originates from the sound made by the ticker tape machines.

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In the 1800s, share prices were announced with the name of the security or company. However, this process became too tedious as the number of listings increased. The process was amended in 1867 when the ticker-tape machine was invented by Edward Calahan.

Ticker symbol compositions and the number of characters vary for different stock exchanges. For example, The National Association of Securities Dealers Automated Quotations (NASDAQ) accepts up to five-letter. The New York Stock Exchange (NYSE), on the other hand, allows only up to four digits.

Types of Stock Symbols

Different stock tickers are as follows:

Examples

Given below is a list of stock symbols that highlights different types of tickers:

How to Use Stock Symbols?

When a company issues different securities over the stock exchange, traders struggle to spot a particular stock. When two or more companies have identical names on the stock exchange, it further adds to the chaos. Thankfully, every stock has a unique abbreviation, i.e., a ticker symbol. Traders can track price fluctuations by creating a watchlist comprising ticker symbols.

Also, the letters added at the end of a stock symbol highlight trading restrictions or security class. For example, Tampa stands for Apollo Asset Management Inc. 6.375% Preferred Stock Series A USD25. Similarly, AAMpB denotes the Apollo Asset Management Inc. 6.375% Preferred Stock Series B USD25.

If a ticker name has an additional alphabet “E,” it highlights a failure to comply with financial reporting regulations—such companies are about to get delistedDelistedDelisting is the process of removing a security from a stock exchange so that it can no longer be traded on that market. It can occur for a variety of reasons, including non-compliance with listing rules or norms, mergers, or bankruptcy.read more from the exchange. However, if the firm completes requirements within set deadlines, the stocks can continue trading in.

This has been a guide to What is a Stock Symbol and its definition. We discuss stock symbol meaning, & types using examples like Apple, Netflix, etc. You can learn more about it from the following articles – 

The ticker denoting particular security can be found on the stock exchange website—where the security is listed. In the search bar, users can type the stock or company’s name to highlight relevant details. The ticker symbol appears in a bracket after the security’s name. Ticker symbols can also be found by using a search engine.

A stock symbol is an arrangement of characters—it provides a unique identification of listed securities. It is used to distinguish a particular stock from the other securities. It assists traders in placing trading orders.

“W” is the fifth letter added to a stock ticker—such securities come with a warrant attached to them.

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