What is Ticker?
Tiker
In short
A stock's short exchange symbol: Apple is AAPL, Microsoft is MSFT.
Also known as: symbol
A ticker is a stock's short letter code on the exchange. It is used instead of the company's full name: searching at your broker, placing orders, opening charts, following news — all through the ticker. US tickers are usually 1–5 letters: Apple is AAPL, Microsoft is MSFT, Ford is F.
What to know about tickers
- Ticker ≠ name. A ticker does not always look like the company's name, and a company with a similar name may trade under a completely different ticker.
- Share classes. One company can have several share classes: Alphabet, for example, trades as GOOGL (class A) and GOOG (class C). They differ in voting rights.
- Tickers change. When a company renames itself, merges or moves exchanges, its ticker may change too. An old ticker can later be reassigned to another company.
- Foreign companies. Many foreign companies trading in the US do so as ADRs, under their own ticker.
Why it matters
A wrong ticker means a wrong stock. In 2020 a small company's shares jumped sharply within days because its ticker resembled the name of a popular video-call company, until the regulator temporarily halted trading. So before placing an order, always check the company name, the exchange and the price.
Adding a ticker to your watchlist also makes it quick to find later.
Example
Say you want to buy 50 shares of the fictional "Bright Solar Inc.". Its ticker is BSLR and the price is $20. Your plan: 50 × $20 = $1,000.
In a hurry you type BSRL. That turns out to be a different, thinly traded company priced at $2. Your market order fills for 50 shares: 50 × $2 = $100. Now you do not have the stock you wanted; instead you hold an unrelated stock with a wide spread — and you lose again when you sell it.
The check takes 10 seconds: does the company name next to the ticker, the exchange (NYSE or Nasdaq) and the last price match what you expect?
Mistakes and tips
Search by company name rather than typing a ticker from memory, and confirm the name in the result.
If a company has two tickers (class A and B), learn the difference: price, voting rights and liquidity can all differ.
Be careful with "next rocket" tickers on social media — obscure tickers are often used in pump-and-dump schemes.
Frequently asked questions
- How is a ticker chosen?
- A company picks its ticker when it lists, provided it is not taken. It is often an abbreviation of the name, but sometimes a brand or product name is used.
- Does the same ticker mean the same company on every exchange?
- Not necessarily. On exchanges in different countries the same letters can belong to different companies, so check the exchange name as well.
Learn it in the Academy
This term is covered with hands-on examples and a quiz in these lessons of the interactive course.
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