P

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DEFINITION of 'P'

A symbol that, when used as the fifth letter in a ticker symbol, indicates that a security is a first preferred issue. Called a fifth-letter identifier, "P" and most other letters of the alphabet, can be used to indicate that a security is not common stock, but has a special characteristic. Other examples of such characteristics and their identifiers include Class A shares ("A"), new issues ("D"), delinquent ("E"), foreign ("F"), or involved in bankruptcy proceedings, as indicated by ("Q").

BREAKING DOWN 'P'

Ownership of preferred stock comes with greater rights than ownership of common stock. Preferred shareholders receive fixed dividends and are paid dividends before common shareholders. Preferred shareholders also have priority in being repaid, in the event that a company liquidates. However, bondholders have priority over preferred stockholders, and preferred stock dividends can be withheld at the company's discretion.

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RELATED FAQS
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    Preferred and common stocks are different in two key aspects. First, preferred stockholders have a greater claim to a company's ... Read Full Answer >>
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    Generally, penny stocks are traded through the use of the Over the Counter Bulletin Board (OTCBB) and through pink sheets. ... Read Full Answer >>
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