Ticker Symbol

A ticker symbol is the abbreviation investors use to look up and trade a security. Instead of typing a company's full name, you enter its ticker, which is usually a combination of one to five letters. Some well-known companies have tickers that resemble their names, while others use creative or historical codes.

The name comes from the old stock ticker machines, which printed prices on long paper strips called ticker tape. Today the symbols appear on screens, apps and scrolling news banners.

Tickers are assigned by the exchange where a stock is listed. Traditionally, NYSE symbols had up to three letters and Nasdaq symbols had four or five, but that distinction has blurred. Extra letters or suffixes can indicate a share class, such as a period followed by A or B.

The same company can have different tickers on exchanges in different countries, and a ticker can change after a merger or name change. Because similar symbols exist, it is a good idea to double-check the company name before placing an order.