Stocks symbol serve as identifiers for stocks on stock exchanges. It is also known as a ticker symbol or a stock ticker. It is composed of letters, numbers, or both. Usually, the letters come from the company's name.
In a symbol, the number of letters varies from exchange to exchange. For example, NASDAQ can have 5 letters or fewer, while the New York Stock Exchange can have up to 4 letters. However, there is also no significant difference.
The system of placing orders was different before the stock symbol concept was introduced. At that time, traders shouted the name of the company when conveying orders. The introduction of stock symbols significantly reduced the time required to announce information about stocks.
A stock symbol may also contain additional letters to indicate share class and trade restrictions. Traders and investors are able to identify the stock symbols easily. Additionally, it allows them to distinguish the stock from others.
Symbols can be selected by companies. However, the stock exchanges are responsible for confirming the symbol. As long as the symbol is not duplicated or misleading, stock exchanges accept it.
Despite the fact that the stock symbol is unique for an exchange, there may be a similar symbol or exact match on another exchange. It is also possible for the stock of one company to have a different symbol at different exchanges.
The following are the different stock tickers:
Following are examples of ticker symbols of stock on the NSE stock exchange.
Sun Pharmaceutical Industries Limited
Bharat Petroleum Corporation Limited
HDFC Life Insurance Company Limited
Hindalco Industries Limited
Aditya Birla Capital Limted
|Sun Pharmaceutical Industries Limited||SUNPHARMA|
|Bharat Petroleum Corporation Limited||BPCL|
|HDFC Life Insurance Company Limited||HDFCLIFE|
|Hindalco Industries Limited||HINDALCO|
|Aditya Birla Capital Limted||ABCAPITAL|
Stock symbols are unique abbreviations assigned to stocks that traders use to find stocks quickly and easily. Due to similar company names, some symbols may look similar. It is, therefore, important for investors to check and make sure they are investing in the right places. In order to protect investors, stock exchanges disallow offensive or misleading symbologies
A company's ticker symbol can be found by searching online financial databases, checking the company's website, checking the stock exchange's website, or asking a financial advisor or broker.
Tickertape was used to transmit stock symbols from stock exchanges to investors across the country, hence the term ticker. Despite modern technology replacing physical tickertape, this name persists.
The following are some examples of popular stock symbols:
In some cases, companies trade with two different symbols because they offer two classes of shares, one with voting rights and the other without.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with financial professionals before making any investment decisions.
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