How can a company reserve a trading symbol on Nasdaq?

2 min read | September 11, 2024 09:52 PM PDT | By Team Kalkine Media

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A company seeking to list its securities on the Nasdaq Stock Market can request a trading symbol by using Nasdaq’s online form. This symbol serves as the unique identifier for the company’s stock on the exchange. The process of reserving a trading symbol for all U.S. markets is regulated by the National Market System Plan for the Selection and Reservation of Securities Symbols. This plan outlines specific guidelines for the reservation and use of stock symbols across various markets, including Nasdaq.

Under this plan, companies may reserve a trading symbol up to 24 months before their planned listing on Nasdaq. Reserving a symbol in advance ensures that the company secures its preferred identifier, preventing other companies from using it. However, if the company does not list its securities within the 24-month reservation period, the reserved symbol will automatically be released, making it available for other companies to request. If the original company still wishes to use the symbol after its release, it can reapply for the same symbol, as long as no other entity has reserved it in the meantime.

It is important to note that Nasdaq’s symbol reservation process applies only to companies planning to list on major U.S. stock exchanges, such as Nasdaq itself. For companies planning to trade on the over-the-counter (OTC) market, symbol reservations are not handled by Nasdaq. Instead, the Financial Industry Regulatory Authority (FINRA) manages the reservation of trading symbols for the OTC market. Companies seeking to reserve a symbol for OTC trading should contact FINRA directly at [email protected] to submit their request and obtain more information.

In summary, Nasdaq provides a straightforward process for companies to reserve trading symbols through an online form, allowing them to secure their desired symbol up to 24 months in advance of listing. Companies should be aware of the reservation expiration date and ensure that they meet the listing timeline, or they risk losing their reserved symbol. If necessary, they can reapply for the symbol after it is released. Companies interested in trading on the OTC market must coordinate with FINRA, as Nasdaq does not handle symbol reservations for that market.

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