Ticker symbols refer to a letter system representing mutual funds or stocks. These symbols are necessary in tracking and finding security information. This is helpful when you are going to quote a service because you will be required to type a ticker symbol for doing the transaction. The letters or the number of letters contains useful security information. The ticker symbols of mutual funds consist of five letters ending in “X”. Take for instance the FMAGX represents Fidelity’s Magellan fund and VFINX represents the Vanguard’s Index 500 fund. If it acts as funds on money market, it uses three letters followed by an X.
Stock symbols listed in AMEX or NYSE exchanges are made up of three letters while Nasdaq exchange uses four letters. However five letters are used in Nasdaq if the stocks contains more than one issue of the common stocks where in the 5th letter has a definite meaning. The fifth letter stock ticker symbols and their meaning.