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Show of hands: How many of us have ever entered the wrong stock ticker into a buy order? Wow, that many? OK, have you ever based an investment decision on how the ticker symbol makes you feel? Or ever been attracted to researching a horrendous stock simply because the ticker was so snappy?

Don't laugh -- these things do happen, however little sense they make. Why else would Sun Microsystems (Nasdaq: JAVA  ) have bothered to change its ticker from SUNW to JAVA last year? The change makes very little practical difference, but JAVA is just easier to remember, and it ties into one of Sun's most prized products: the Java programming language.

You can bet that Natus Medical (Nasdaq: BABY  ) thought long and hard to land the BABY ticker. NATS or NTUS would have worked fine, but the company specializes in newborn-care products. There's an emotional hook on that BABY. Is that enough to make you buy a stock you'd otherwise pass over? Hard to say, but Natus doesn't lose anything by taking that chance. Can't hurt, might help.

Some unexpected tickers have more trite explanations. NYSE Euronext (NYSE: NYX  ) should by all accounts want the NYSE ticker, except that the NYSE doesn't offer four-letter tickers. To claim the NYSE moniker, it would need to register with competitor Nasdaq OMX's (Nasdaq: NDAQ  ) stock exchange. That irony would simply be too rich.

Now that the NYSE owns the American Stock Exchange, it dominates the three-letter ticker universe -- although not exclusively, as some Nasdaq companies now sport shorter tickers as well. Still, many big companies tend to prefer the NYSE -- including the other AMEX, American Express (NYSE: AXP  ) .

The NYSE exchange has a lot of tradition baked into it, and a long history of highly liquid trading in top-notch securities. These days, there may not be much of a difference between NYSE and Nasdaq trading when it comes to liquidity and market exposure, but traces of that age-old supremacy remain in investors' minds. That's why Coca-Cola (NYSE: KO  ) goes by the less-than-obvious KO ticker while the lesser-known Coca-Cola Bottling (Nasdaq: COKE  ) gets the COKE symbol.

The companies don't really mean to confuse us, but history and tradition just worked out this way. And just imagine the massive confusion that would ensue if those two Coke entities ever attempted to swap tickers -- a giant with a $100 billion market cap and over $500 million in daily trading would take the place of a $490 million minnow that shifts less than $1 million worth of shares each day. One day's worth of fat-fingered KO trades would move the entire bottling company's share base into new hands.

So, no, the names don't really matter. Just remember which ticker goes where -- and try to keep up.

Further Foolishness:

Natus Medical is a Motley Fool Hidden Gems recommendation. Coca-Cola is a Motley Fool Income Investor selection. American Express, Coca-Cola, and Nasdaq OMX Group are Motley Fool Inside Value recommendations. NYSE Euronext is a Motley Fool Rule Breakers selection. The Fool owns shares of Nasdaq OMX Group and American Express. Try any of our Foolish newsletters today, free for 30 days. And now take a deep breath after that huge mouthful.

Fool contributor Anders Bylund owns shares in Coca-Cola (the syrup-slinger, not the bottler), but he holds no other position in any of the companies discussed here. You can check out Anders' holdings or a concise bio if you like, and The Motley Fool is investors writing for investors.

Read/Post Comments (1) | Recommend This Article (4)

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  • Report this Comment On April 18, 2009, at 9:01 AM, rice31delta32 wrote:

    Name game, most of time>^^ does seem to work when bull swings are working well. Just a few examples: [TIE], [POT], [CHAP], [AH], [HERO].

    Then you have some like: [FITB], fit-b and [GYMB], gym-b. But these are not know as "B" stocks.

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10/21/2016 4:00 PM
KO $42.13 Up +0.20 +0.48%
Coca-Cola CAPS Rating: ****
AXP $67.36 Up +0.58 +0.87%
American Express CAPS Rating: ****
BABY $41.15 Down -0.50 -1.20%
Natus Medical CAPS Rating: ****
COKE $143.16 Up +0.27 +0.19%
Coca-Cola Bottling CAPS Rating: ****
JAVA.DL $9.49 Down +0.00 +0.00%
Sun Microsystems,… CAPS Rating: **
NDAQ $66.18 Up +0.45 +0.68%
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NYX.DL $0.00 Down +0.00 +0.00%
NYSE Euronext CAPS Rating: *****