How To Use Stock Symbols

A stock symbol, also referred to as a ticker symbol, is a unique alphabetic code that identifies a stock or security so that traders can identify it on the open market. The number of letters can vary from one to five depending on the stock exchange. Sometimes, an added symbol or letter(s) denotes a special characteristic or gives some additional information about the stock.

Decide which stock exchange to use

The requirements for stock ticker symbols are different for all of the major stock exchanges. The New York Stock Exchange allows "root" symbols for stocks to consist of one to three letters, while the American Stock Exchange "root" symbols are always three letters. The NASDAQ exchange allows only four- or five-character "root" symbols that cannot contain an "x" as the fifth digit. This denotes special characteristics of or information about the stock. A stock's ticker symbol on one stock exchange would be completely different on another, so it is important to know both the company and the exchange.

Look for extra digits

Characters or letters can denote many variables at the end of a stock ticker symbol, such as a stock's class, warrants, preferred status, bankruptcies and many other types of stock information. The symbols "+," "-" and"." also appear in combination with letters to denote specific information. It is imperative to study and learn the information symbols associated with a specific exchange in order to have access to the most detailed information possible.

Stock symbols are valuable resources both for the experienced trader and the new investor. Stock symbols provide a great deal of information about the stock for those familiar with the meanings and special attribute codes for the various stock exchanges.

The number of letters can vary from one to five

by Henry Brown, Electronics writer