L

AAA

DEFINITION of 'L'

The fifth character added to a stock symbol listed on the Nasdaq to denote a miscellaneous situation. When L is present as the fifth letter of a Nasdaq ticker symbol, it indicates a subordinate issue including certificates of participation, preferred participation and stubs, which represents a stock that is made up of the converted bonds of a distressed company.

INVESTOPEDIA EXPLAINS 'L'

Generally, common stock will have a four-letter symbol on the Nasdaq. When a fifth letter is added, such as an L or Z, it indicates that the shares are different or special in some way. Depending on the letter used that may mean they are non-voting shares, they are rights, it is a second or third offering or that its part of a reorganization.

RELATED TERMS
  1. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  2. Fifth-Letter Identifier

    An additional letter added onto four-letter ticker symbols to ...
  3. Z

    A Nasdaq stock symbol specifying that the stock is a miscellaneous ...
  4. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  5. Stock Symbol

    A unique series of letters assigned to a security for trading ...
  6. Acquisition

    A corporate action in which a company buys most, if not all, ...
Related Articles
  1. Getting To Know The Stock Exchanges
    Options & Futures

    Getting To Know The Stock Exchanges

  2. The NYSE And Nasdaq: How They Work
    Options & Futures

    The NYSE And Nasdaq: How They Work

  3. The ABCs Of Stock Indexes
    Economics

    The ABCs Of Stock Indexes

  4. What's the difference between a Nasdaq ...
    Brokers

    What's the difference between a Nasdaq ...

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center