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A smart stock ticker is more than just a gimmick. Whether it’s WOOF, EAT, or the initials of a former company president, a memorable stock symbol can help a company attract investors.
A 2006 study by psychologists at Princeton University found that stocks with easy-to-pronounce ticker symbols tend to perform better in the early days of trading. In 2019, another Pomona College researcher validated previous research that found smart tickers tend to perform better because they are more memorable to investors.
“There is evidence that there is value in having a company name and ticker that investors like and that are easy to process,” said Russell James, an associate professor of finance at the University of Kentucky. “More transactions occur within the company, which increases the liquidity of the stock, broadens the scope of ownership, and ultimately increases valuation ratios.”
An example of stock ticker branding could hit the market next week. The parent company of Truth Social, the social media platform launched by Donald Trump who was kicked out of Facebook and Twitter after the Jan. 6 attack on the Capitol, could begin trading on the stock market.
Ticker symbol? DJT, Donald J. Trump.
Here are just some of the more creative stock market symbols currently trading.
Weft: Petco Health and Wellness Company has been trading under the ticker “WOOF” since its 2021 IPO amid the lockdown-induced pet boom.
Love: Southwest Airlines has been closely associated with the word “love” since its founding in 1971, when it announced its first flight out of Love Field in Dallas. The airline’s marketing team piggybacked on the name, selling tickets to ride in “LUV seats” and offering customers “LUV bites” and “LUV potions.”
President Trump’s economic woes:Will the deal with Truth Social save him from financial trouble? perhaps.
Tap: Molson Coors Beverage, the parent company of Coors, Blue Moon, Keystone and other adult beverages, tapped into its brewery roots when choosing its ticker symbol.
eat: This is from Brinker International. If the name doesn’t ring a bell, you may be more familiar with restaurant brands like Chili’s Grill & Bar and Maggiano’s Little Italy.
cake: What better company to own a CAKE ticker than Cheesecake Factory?
Trump’s truth social is now public:Social media platform parent wins merger vote
Fizz: National Beverage’s portfolio includes LaCroix and several other sparkling waters, juices, energy drinks and carbonated soft drinks.
play: Dave & Buster’s stores include restaurants and bars, but the company highlights its video arcade offerings with its ticker symbol.
Zeus: The ancient Greek god is a perfect fit for Olympic Steel, an Ohio-based metal service center.
fun: Amusement park operator Cedar Fair says in its ticker symbol that it has “cornered the market on fun.”
pig: The Harley-Davidson motorcycle nickname dates back nearly a century. Ray, who was a member of his factory racing team in the early 1900s, adopted a piglet named Johnny. The pet became the team’s mascot and was brought along on victory laps. Harley-Davidson motorcycles became known as pigs.
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