What it is:
How it works/Example:
When a company goes public orsecurities to the public, it selects an exchange on which those securities trade and a stock symbol that identify those securities. In some cases, companies try to make their symbols "memorable" (such as TAP for beer company Molson Coors or DNA for biotechnology Genentech).
The New York Stock Exchange (NYSE) uses stock symbols with three letters or fewer (such as NYT for the New York Times Co., or T for AT&T). Symbols with four or more letters generally denote securities traded on the American Stock Exchange and Nasdaq. Symbols ending in X denote mutual .
Why it matters:
Stock symbols are key to facilitating the huge number of trades that occur every day around the world. Without them,and investors would likely confuse issuers, securities and different securities from the same . Stock symbols, via their additional-letter codes, also communicate important information to investors about the trading status of the security or the .