A:

It's true that all mutual funds' tickers have an X at the end of their symbol. The reason for this is to distinguish between mutual fund tickers and other securities that also have ticker symbols (such as stocks and bonds). This way you will automatically recognize a mutual fund by the X at the end of its ticker.

Another example of this is a money market fund, which will be followed by two Xs.

Another reason behind the extra letter is that it allows for more ticker possibilities. If all securities in the market were restricted to a four-symbol ticker it would limit the overall number of possible combinations of tickers. By adding a classifying letter to a ticker symbol, such as an X, you greatly increase the number of possible tickers and available choices of tickers.

There are other characteristics among tickers that may be of interest. Stocks that trade on the NYSE will have three or less symbols and never more than that. However, tickers on the Nasdaq have four letters.

To read more on this subject, see Understanding The Ticker Tape or the frequently asked questions, What do all of the letters in a stock option ticker symbol mean? and My stock's ticker symbol recently changed, why is this?

RELATED FAQS
  1. Do hedge funds have ticker symbols?

    Discover whether or not hedge funds have ticker symbols, where you can find ticker symbols and the significance of a ticker ... Read Answer >>
  2. What is a stock ticker?

    A stock ticker is a report of the price for certain securities, updated continuously throughout the trading session by the ... Read Answer >>
  3. What do all of the letters in a stock option ticker symbol mean?

    The option ticker explains four main things about the option: the underlying stock, whether it is a call or a put option, ... Read Answer >>
  4. What are the fifth-letter identifiers on the Nasdaq?

    All of the companies traded on the Nasdaq have four-lettered tickers, which are representative of the actual company. For ... Read Answer >>
  5. Why did my stock's ticker symbol change?

    When a ticker symbol changes it's usually not a good sign. Tickers of publicly traded companies generally only change for ... Read Answer >>
  6. Which of the following equity trades would appear on the ticker ...

    Free info on financial certification exams including study guides, exam questions, and much more! Read Answer >>
Related Articles
  1. Investing

    Translating Ticker Talk

    Stock tickers can say a lot about a company in just a few letters. Find out how to read them.
  2. Trading

    Keeping Securities Clear With Ticker Symbols

    A ticker symbol is a group of characters that represent a specific, publicly traded security that’s listed on an exchange.
  3. Investing

    Understanding The Ticker Tape

    We explain the meaning and use of that reel of symbols whizzing across your TV or computer screen.
  4. Trading

    Understanding The 2010 Options Symbology

    There is a wealth of information in the expanded option symbols, but they should make things easier for traders.
  5. Investing

    NYSE Glitch Halts Trading in 199 Tickers (ICE)

    A technical glitch described as a "critical issue" has halted trading in 199 tickers on the New York Stock Exchange.
  6. Trading

    The Right Way To Set Up Your Trading Screens

    Well-organized trading screens sum up intraday market action, breaking it into digestible bites that can speed up complex decision making.
  7. Financial Advisor

    The Most Popular ETFs with Financial Advisors

    Financial advisors might continue to perform well by holding these popular ETFs, but time is limited.
  8. Financial Advisor

    A Mutual Funds Guide for Young Investors

    Learn how mutual funds work, why they are so popular and how younger investors can get started by putting mutual funds in their IRAs or 401(k)s.
  9. Insights

    Understanding NASDAQ

    NASDAQ is an acronym that stands for the National Association of Securities Dealers Automated Quotation system.
RELATED TERMS
  1. Ticker Symbol

    An arrangement of characters (usually letters) representing a ...
  2. Ticker Tape

    A computerized device that relays financial information to investors ...
  3. Hard-Coded Stock

    This is a term that refers to a company's stock symbol or ticker ...
  4. Flash Price

    An up-to-the-minute quote for a heavily-traded stock that is ...
  5. R

    1. An occasional fifth letter in a Nasdaq-traded company's ticker ...
  6. Z

    A Nasdaq stock symbol specifying that the stock is a miscellaneous ...
Hot Definitions
  1. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  2. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  3. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  4. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  5. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  6. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
Trading Center