If you have ever watched business news or looked at the stock market, you must have seen short codes like TCS, RELIANCE, or INFY. These are called stock ticker symbols. But what exactly are they? Let’s understand it in easy way:
What is a Stock Ticker Symbol?
A Stock Ticker Symbol is a short set of letters used to represent a company on the stock market. Think of it like a nickname for a company that is listed on the Stock Exchange. It helps traders and investors quickly identify the company while buying or selling shares.
For example:
- TCS stands for Tata Consultancy Services
- RELIANCE stands for Reliance Industries Limited
- INFY stands for Infosys
Why are Ticker Symbols Used?
There are thousands of companies listed on stock exchanges. Many have similar names. To avoid confusion, each listed company gets a unique ticker symbol.
This makes trading easier. If you are using a trading app or watching stock prices on TV, the ticker symbol shows up next to the share price.
Ticker Symbols in India
In India, the two main stock exchanges are:
- NSE (National Stock Exchange)
- BSE (Bombay Stock Exchange)
Ticker symbols in India are usually alphabetic (made of letters), and they are easy to remember. The symbol is usually related to the company name.
Some examples:
- HDFCBANK – HDFC Bank
- SBIN – State Bank of India
- ITC – ITC Limited
- WIPRO – Wipro Limited
How to use Ticker Symbols
If you are using a stock trading platform like Zerodha, Groww, or Upstox, you can simply type the ticker symbol in the search bar to find the company’s shares.
Example: Type “INFY” to buy or check Infosys shares.
Conclusion
Understanding ticker symbols is one of the first steps in learning how to invest in the stock market. They are simple, useful, and save time. So next time you see a code like “TCS” on the screen, you’ll know it’s the stock ticker for Tata Consultancy Services!