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Note that many of these modifiers apply only to quotations directly from stock exchanges, and you are not likely to see them as a nonprofessional investor. Here are some of the stock ticker modifiers you are likely to see:

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Reading a stock ticker is usually pretty easy. Let's use Netflix (NFLX -1.8%) as an example. The company's legal name, which is the same name the company uses to file documents with the Securities and Exchange Commission (SEC), is Netflix, Inc. The stock exchange it trades on is the Nasdaq (NDAQ -0.89%), and the streaming entertainment company's ticker symbol is NFLX.

Stock symbollist

Stock ticker codes or symbols were originally created to shorten publicly traded company names on ticker tape printed by brokerage houses. Today, a stock ticker helps you search for a specific stock online and perhaps make a trade using your brokerage's website.

Ticker

While every stock exchange has its own rules for ticker symbols, it's helpful to understand broadly how stock tickers can appear. Most of the variation is caused by the modifiers, which below are explained from A to Z:

Each stock exchange sets the rules for the length and format of its stock ticker symbols, which is why variations in stock tickers exist. As previously noted, most stock tickers are three or four letters, and some stock exchanges allow numbers. The New York Stock Exchange (NYSE) allows as many as four letters, and the Nasdaq allows up to five.

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Stock tickers are useful because they can help you search for and find specific companies and funds, avoiding the confusion that can be caused when organizations or funds have similar names. Understanding modifiers is also useful, although it's not always necessary.

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Some stock ticker symbols also include modifiers, which are additional (usually fifth) letters or letters following periods in the symbols. Modifiers can be used to express the type of security, such as a mutual fund; the type of stock, such as a preferred stock; or the class of stock, which denotes shareholder privileges.

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This information, taken together, and with the addition of the stock price and information about its recent movement, is the stock's ticker -- at least in the strictest sense. "NFLX" is customarily referred to as the company's ticker despite being only the symbol representing Netflix on the Nasdaq exchange.

Stock ticker symbols are codes that represent publicly traded companies in the stock market. Although a stock's ticker, strictly speaking, is distinct from its ticker symbol, most investors use the term stock ticker as shorthand for its ticker symbol. The ticker itself is the constantly updating stream of information about a stock, and the ticker symbol is its code, consisting of between one and four letters.

Although most stock ticker symbols are composed of three or four letters, some older companies have one- or two-letter tickers. Mutual funds and many foreign companies have five-letter ticker symbols. Most ticker symbols are either abbreviations of companies' names -- such as ABNB for Airbnb (ABNB -1.43%) -- or somehow related to the company, such as Petco's (WOOF -0.73%) clever choice of WOOF.

Over time, you are likely to start memorizing the stock ticker symbols for your favorite companies, which can make keeping up with the performances of your investments easier and faster.

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Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, personal finance education, top-rated podcasts, and non-profit The Motley Fool Foundation.

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