A combination of characters representing a listed stock
What is a Ticker?
A ticker is a symbol, a unique combination of letters and numbers that represent a particular stockor security listed on an exchange. The symbol is used to refer to a specific stock, particularly during trading. Trades are executed based on a company’s ticker symbol, which is recorded in the exchange’strading system. The system will find the stock easily when the ticker symbol is entered.
Shares of the same company can be traded on several exchanges, but they will have different stock ticker symbols for each different exchange the stock is traded on. The two images above and below show us the difference between two symbols for the same stock that is trading on two different exchanges. For the stocks of Indian pharmaceutical firm, Dr. Reddy’s Laboratories, the ticker symbol is DRREDDY on the Indian stock exchange,NSE, and RDY on the US stock exchange,NYSE.
Purpose of Ticker Symbols
Ticker symbols are used on stock exchanges because they are easy abbreviations that are useful to investors and analysts to help them identify stocks and obtain all relevant information such as stock split, dividend data, earnings reports, etc. There are some companies that trade with two different symbols on the same stock market because they offer two classes of shares, one with voting rights and another without voting rights.
An example is Alphabet, formerly known as Google, which trades under the symbols GOOGL and GOOG, representing the company’s class A shares and class C shares, respectively. The symbols also help in identifying the type of shares traded on different stock exchanges. They are presented in different patterns in different indices, which makes them easy to find on trading sites and stock exchange websites.
Ticker Symbol Example
The shares of Berkshire Hathaway are traded with two stock symbols, representing its two classes of shares that are traded on the NYSE – class A and class B with ticker symbols BRK.A and BRK.B, respectively. Class A shares provide shareholders with more voting rights compared to class B shares. This type of classification is necessary to avoid confusion. To clearly classify the types of stocks, it is necessary to use different symbols.
More Readings
CFI is a global provider of financial analyst training and oversees the Capital Markets & Securities Analyst (CMSA®)certification program. To continue advancing your career in corporate finance, these additional resources will be helpful:
FAQs
informal. a heart. SMART Vocabulary: related words and phrases. The circulatory system & blood.
What is the meaning of the name ticker? ›
The name ticker comes from the sound the original machines made, similar to a ticking clock (something that, along with your beating heart, can be called a ticker colloquially). Definitions of ticker. a character printer that automatically prints stock quotations on ticker tape. synonyms: stock ticker.
What do you mean by ticker? ›
A ticker is a type of stock symbol that describes information about the stock of a company. Tickers take the form of shapes, characters, numbers and colours, and are indicative of any kind of change that a security on the financial market shows.
How do you use ticker in a sentence? ›
Examples of ticker in a Sentence
The news came over the ticker. Exercise is good for your ticker.
What does ticker stand for? ›
The ticker, commonly called a ticker symbol or stock symbol, comprises a brief name to identify the asset. A ticker symbol may contain numbers or other characters and is frequently an acronym of a company's name.
What is a ticker in the body? ›
Noun (3) Ticker. 01. the hollow muscular organ located behind the sternum and between the lungs; its rhythmic contractions move the blood through the body. heart.
What does "old ticker" mean? ›
(old-fashioned, informal) a person's heart. 'There's nothing wrong with the old ticker,' he said.
What is the ticker symbol acronym for? ›
Ticker symbols are short, capital-letter abbreviations that represent publicly traded securities on stock exchanges. Ticker symbols are abbreviations used to represent stocks and other publicly traded securities on stock exchanges.
Is a heart a ticker? ›
countable noun. Your ticker is your heart. [informal, old-fashioned] Collins COBUILD Advanced Learner's Dictionary.
What is a ticker in English? ›
noun. a telegraphic receiving instrument that automatically prints stock prices, market reports, etc., on a paper tape. a person or thing that ticks. tick.
When you send a message for broadcast, the ticker scrolls through messages at a regular interval. Any user with permissions to use ticker messaging can send messages to the ticker. This feature enables supervisors to communicate with groups by sending messages to the ticker on the workstation.
What is the meaning of running ticker? ›
a moving area on a screen that shows changing information such as news or share prices: A stock ticker runs along the screen, so that you can check your portfolio.
What is a ticker example? ›
Identify a specific security: Ticker symbols are used to identify a specific security, such as a stock or bond, on a financial platform or stock exchange. For example, the ticker symbol for Apple Inc. is "AAPL," while the ticker symbol for the S&P 500 index is "SPX."
What does "dodgy ticker" mean? ›
Heart murmurs are detected when a veterinarian listens to a dog's heart and hears a whooshing sound. It's not always a reason for concern, but it can be. In dogs, common causes include heart valve problems, heart defects, tumours, heartworm disease, or weakening of the heart muscle.
How long is a ticker? ›
The allocation of symbols and formatting conventions is specific to each stock exchange. In the US, for example, stock tickers are typically between 1 and 4 letters and represent the company name where possible. For example, US-based computer company stock Apple Inc.
What is ticker in media? ›
Word forms: plural news tickers. countable noun. A news ticker is an electronic display of news headlines that runs along the bottom of a television or other screen.
