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. Is there a situation in which wash trading is legal?

    Learn about what wash trading is and how it can affect the value of a stock. Explore the difference between wash trading ...
  2. What action is the SEC likely to take on 12b-1 fees?

    Read about what actions the SEC may take with regard to 12b-1 fees, and for what purposes these types of fees can be used ...
  3. What is considered a reasonable 12b-1 fee?

    Learn what is generally considered to be a reasonable 12b-1 fee, what these fees are charged for and how these fees are regulated.
  4. What are some of the most common mutual funds that give exposure to the retail sector?

    Obtain information on some of the most popular and best performing mutual funds that investors use to gain exposure to the ...
RELATED TERMS
  1. Exchange-Traded Mutual Funds (ETMF)

    Investopedia explains the definition of exchange-traded mutual ...
  2. Dividend

    A distribution of a portion of a company's earnings, decided ...
  3. Sharpe Ratio

    A ratio developed by Nobel laureate William F. Sharpe to measure ...
  4. Historic Pricing

    A method for calculating the value of an asset using the last ...
  5. Bear Fund

    A mutual fund designed to provide higher returns when the market ...
  6. Ulcer Index - UI

    An indicator developed by Peter G. Martin and Byron B. McCann ...

You May Also Like

Related Articles
  1. Mutual Funds & ETFs

    Why Mutual Funds are Still Better than ...

  2. Investing Basics

    Shareholders: Vote Your Proxy and Be ...

  3. Professionals

    Worried About Stocks? Try on Convertibles

  4. Mutual Funds & ETFs

    Looking To Invest In Texas? Here Is ...

  5. Mutual Funds & ETFs

    4 Ways You Can Invest In Gold Without ...

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!