Stock/Security Symbol/Ticker

General
1

Hi,

While listing, how is the Stock/Security symbol determined? Why and how do symbol changes happen in the exchanges?

Thanks

2

The ticker symbol is the arrangement of characters you see against a particular security. The symbol is assigned to a company that is listed and goes on to issue its stock. Typically, companies are asked to pick a ticker symbol available at that point. All companies get their own stock symbols and this ensures ease of transactions on a daily basis.

The ticker symbol may be different for a stock in a different stock exchange. A symbol for X company could be one set of letters/characters for the NSE and another for the NYSE or so on. These easy stock symbols help analysts or even the regular investors to easily spot stocks and get all data related to that stock.

  • The ticker symbol of an acquired company usually changes to the acquirer’s after the completion of a merger.
  • A company that changes its name may change its ticker.
  • When companies are delisted from their exchanges, the symbol changes.
  • Investors don’t need to do anything after a ticker symbol changes.

Info from investopedia.