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Earning their name from the ticker tape machines once widely used in stock exchanges, a ticker symbol is a mnemonic used to represent companies traded on a stock market. Mutual funds can also be represented by ticker symbols.
Symbols with up to three letters represent stocks that are listed and are traded on an exchange. Symbols with four letters represent stocks listed on the NASDAQ. Symbols with five letters represent NASDAQ stocks other than single issues of common stock. Symbols with five letters ending in X represent mutual funds.
The word ticker symbol is synonymous with stock symbol.