A lot of companies have ticker stock symbol including Netflix. as one of the publicly traded companies, Netflix also has ticker stock symbol. For Netflix, the term is more known as Netflix ticker stock symbol. Do you know this term? What is Netflix ticker stock symbol? Please read this entire article to know more about it.
A stock symbol of Netflix can be defined as the unique series of letters assigned to the security for trading purpose. The Netflix ticker stock symbol is NFLX (NASDAQ). Stock symbol is also known as ticker symbol. Here is some explanation and the brief story of it.
In the 1800s (it is when stock exchanges were introduced into the market), the floor traders should communicate the stock price of the company by writing or shouting out the full name of the company. If Netflix were exsisted in that era, it should be called Netflix. Right now, it just has to be called NFLX. As the amount of publicy traded companies increased, some sides realized that this process was time consuming and held up the information queue as the prices changed frequently. To make it more efficient in relaying the price changes on the company stock to inverstors, every name of the company was shortened to 1 to 5 aplha symbols. Therefore, NFLX is there.
In order to save time and to capture the specific stock prise at the right time, stock symbols are also useful if there is the case when the two copmanies of more have similar names. Let’s take the example. Apparently, there are two companies named CIT Group Inc. And Citigroup Inc. perspectively. they might have the very similar names but they are not affiliated with each other. The first one is a financial holding company. Meanwhile, the last one is the financial servies and the investment banking firm. Every investor who has the intentin to purchase the shares in one will find it easier to know the stock symbol of he company they are interested in. In the same case, the Netflix ticker stock symbol also can make the investor who wan to purcahe the shares would find it easier.
Neflix ticker stock symbol can indicate whether the shares of Netflix has the voting rights, especially for the companies that have more than one class of shares trading in the market. This situation happens to HP. In the year of 2015, Hewlett Packard split into two separate companies which are Hewlett Packard Enterpise and HP Inc. The first one, with the ticker stock symbol HPE, serves as the business service and hardware division. It also focuses on the servers, the storage, the networking, and the security. On the other hand, the second one is the consumer facing computer and printer division. In fact, this one has smaller market for its products compared to the first one. If there is an investor who is looking to purchase shares of HP Inc., they have to conduct his or her due diligence to ensure that they have the right stock symbol for the right company division.