Does it Matter if Ticker Symbols are 3 or 4 Characters on NASDAQ?

18 Pages Posted: 13 Aug 2009

See all articles by Jared F. Egginton

Jared F. Egginton

Boise State University - College of Business & Economics

Bonnie F. Van Ness

University of Mississippi - Department of Finance

Robert A. Van Ness

University of Mississippi - Department of Finance

Date Written: August 12, 2009

Abstract

In July 2007 the SEC granted a proposal by the NASDAQ stock exchange to allow firms relisting on the NASDAQ to retain their 3-digit ticker. 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. Our results suggest that ticker lengths for NASDAQ listed stocks do not matter to traders. After moving from AMEX to NASDAQ, the number of trades and trading volume shift from AMEX to NASDAQ. We also find some evidence that trading activity on ARCA decreases after relisting on NASDAQ.

Keywords: NASDAQ, Ticker Symbol lenght

Suggested Citation

Egginton, Jared Frank and Van Ness, Bonnie F. and Van Ness, Robert A., Does it Matter if Ticker Symbols are 3 or 4 Characters on NASDAQ? (August 12, 2009). Available at SSRN: https://ssrn.com/abstract=1448119 or http://dx.doi.org/10.2139/ssrn.1448119

Jared Frank Egginton

Boise State University - College of Business & Economics ( email )

United States
2084264586 (Phone)

Bonnie F. Van Ness

University of Mississippi - Department of Finance ( email )

Oxford, MS 38677
United States
662-915-6749 (Phone)
662-915-7968 (Fax)

Robert A. Van Ness (Contact Author)

University of Mississippi - Department of Finance ( email )

Oxford, MS 38677
United States

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