For more almost forty years I could fell safe knowing that if a company’s stock symbol had three letters it was listed on the New York Stock Exchange or possibly the American Stock Exchange. If the symbol had four or five letters, it was listed on the NASDAQ.
Delta Financial Corp. (DFC) recently transferred its listing to from the Amex to Nasdaq and sought to use the same symbol. Despite numerous (well-founded, I hasten to add) objections, the SEC decided to approved a rule change to permit an issuer to keep its three-character ticker symbol if it transfers its listing to Nasdaq from another domestic listing market.
The SEC says it approved the change to avoid the anti-competitive effect of the prior ban. It added that there was little reason to impose the costly and disruptive burden involved in changing a company’s ticker symbol if it simply wants to list on another exchange.
So, Delta, are you happy now? Why ruin it for the rest of us? I do not really know why this is such a big deal for us diehards. There was just something comfortable in knowing that if it was three letters … Look, I was finally learning how to post blogs on the internet when you hit me with this! If you think for one minute I will buy a single share of your stock, forget it.
By: William S Shepherd
After joining the securities industry in 1970, William Shepherd left in 1990 to found of the law firm of Shepherd Smith and Edwards. This securities law firm represents investors seeking to recover losses in accounts at investment firms. If you or someone you know has suffered investment losses, contact Shepherd Smith and Edwards today.