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Why are NASDAQ's ticker symbol's limited to four characters?

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Nasdaq tickers are usually either 4 or 5 letters. See for example Comcast which trades as CMCSA. When the Nasdaq was created it used 4 letter tickers to differentiate it from other markets such as the NYSE, this was later expanded to allow 5 letter tickers. read more

When the Nasdaq was created it used 4 letter tickers to differentiate it from other markets such as the NYSE, this was later expanded to allow 5 letter tickers. As of 2007, the rules allow a stock to retain its ticker if it switches exchanges, so it is also possible for some tickers on the Nasdaq to be less than 4 letters. read more

We examine whether the length of a ticker symbol on NASDAQ matters by comparing stocks that transfer their listing from AMEX to NASDAQ with 3-digit tickers, which previous signaled a listing on the AMEX or the NYSE, to stocks that list on NASDAQ with the historical 4-digit symbol. read more

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