A stock symbol or stock market symbol is also known as the ticker symbol. A ticker symbol is implemented for distinguishing the shares of various public companies and corporations on a specific stock market. A stock market symbol may be alphabetic or numeric or alphanumeric in nature.
In the United States, the word “ticker” is applied for denoting ticker symbol particularly to United States stocks.The Standard & Poor formulated the contemporary representation of ticker symbols only through letters and this was done for the purpose of bringing a countrywide benchmark for investments.
Earlier, an individual corporation used to have a number of distinct ticker symbols simply because of the reason that the stock market symbols changed among a number of stock markets.Nevertheless, the Standard & Poor arrangement was evaluated by the financial markets and amended over the passage of time
Following are few examples of the United States stock market symbols:
MSFT: Microsoft Corporation
KO: The Coca-Cola Company
TGT: Target Corporations
F: Ford Motor Company
Q: Qwest Communications International Incorporated
Y: Alleghany Corporation
S: Sprint Nextel
X: United States Steel
A U.S. stock symbol, as well as its attached codes can inform an investor which place the stock is being traded and also render an idea about the performance of the company.
In July 2007, the Securities Exchange Commission (SEC) of the United States sanctioned a policy for allowing companies to shift from the New York Stock Exchange to the NASDAQ for holding back the three letter symbols. However, this amendment is not applicable for companies that carry stock symbols containing one or two letters.
The stock symbols are distinctive symbols that are allotted for every stock that is being traded on a stock exchange. The stock symbols for NASDAQ contain four to five characters, the stock symbols for the New York Stock Exchange contain one to three characters and the stock symbols for the Over the Counter Bulletin Board (OTCBB) contain four to five characters.
Last Updated on : 26th August 2013