Basics on Stock Symbols
The Henssler Financial Group Position Paper

The Hensler Financial Group Wealth ManagementAll securities listed on either the New York Stock Exchange, the American Stock Exchange, or the NASDAQ system are identified by a unique stock symbol or ticker symbol. The stock ticker symbol appears on the "ticker tape" that scrolls across the bottom of most financial news programs whenever the stock is traded. A stock's symbol also provides the investor with some basic information about the company.

NYSE & AMEX Symbols

If a stock symbol consists of one, two or three letters, the stock represented by that symbol trades on one of the two exchanges, either the New York Stock Exchange (NYSE) or the American Stock Exchange (AMEX). One exception to this general rule occurs when a company that trades on the NYSE or AMEX has both "A" and "B" class shares. In this case, a stock with a four-letter symbol ending in A or B may trade on the NYSE or AMEX.

NASDAQ Symbols

Most four-letter stock symbols represent stocks that trade on the NASDAQ system. Some NASDAQ issues also have five-letter symbols. The fifth letter in a five-letter symbol provides information about the company. Sometimes, the fifth letter identifies the type of stock, or the type of security:

  • A or B: represent A and B class shares for NASDAQ stocks
  • V or Y: represent American Depository Receipt (ADR) shares
  • F: represents a foreign stock trading on NASDAQ
  • G or H: represent a convertible bond
  • M, N, O or P: represent a preferred stock
  • W: represents a warrant
  • L or Z: represents various miscellaneous classes of stock or types of security

However, sometimes the fifth letter provides a warning to the investor about a more serious issue concerning the company:

  • Q: means the company is in bankruptcy proceedings
  • E: means the company is delinquent in required filings with the SEC, as determined by the National Association of Securities Dealers , or NASD (this may be a sign of trouble)
  • C: means the company is exempt from NASDAQ listing qualifications for a limited period of time (this may not be serious, but the investor should keep an eye on the situation and make sure the company meets the listing qualifications once the limited period of time ends)

Much more information is needed about a company to determine if it represents a good investment opportunity than can be found in the symbol. However, it doesn't hurt to know the basics.

All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing.

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