Mergers

• A company merger is the combining of two separate companies into one. Usually when a merger takes place, a larger company will buy out a smaller company using cash payouts and by issuing shares in the newly formed company to stockholders and key employees. If a company you own stock in merges with a new company, the symbol may be changed to represent the new company that has been formed as a result of the merger.
  
  

Delisting

• Stock symbols are issued by the stock exchange the company trades on. Each exchange has certain listing requirements that must be maintained. For example, all major exchanges require that a company share price remain above $1 a share. If the price drops below $1, the company can be delisted and its stock will begin trading in the over-the-counter market. Usually, when a company is delisted, letters will be added to its symbol, such as .PK, .OB or .OTCBB.
  
  

Name Change

• A symbol change sometimes occurs when a company changes its name. This happened to AOL Time Warner when they dropped AOL from their company name. Before the name change, the stock traded under the symbol AOL. Following the name change, the company began trading under the symbol TWX. When a symbol changes due to a company name change, it usually has no implications on company performance or outlook.
  
  

Nasdaq Symbols

• The Nasdaq stock exchange has a unique symbol format. Most stocks trading on the Nasdaq exchange are assigned a four-letter symbol. Sometimes Nasdaq stocks have a fifth letter in their symbol, which represents additional information about the company or the stock. For example, if the company fails to file its quarterly reports in a timely manner, an "E" is added to the end of its four-letter symbol. If a "Q" is added to the end, it means the company has filed for bankruptcy.