A new file is created with the same file name plus the word "alias" is appended to the end of the file name. Aliases can be quickly identified by a tinny arrow on the bottom-left corner of the file icon.
There is a faster method to create an alias and avoid having the "alias" text appended to the file name.
Press Option Command and click and drag the file outside of the Finder window it's in (drag it to the desktop for example). This creates an alias without the word "alias" attached to the file name.