P

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.

RELATED TERMS
  1. M

    The fifth letter of a Nasdaq stock symbol that specifies the ...
  2. O

    A component of a stock symbol that indicates the shares of that ...
  3. R

    1. An occasional fifth letter in a Nasdaq-traded company's ticker ...
  4. Fifth-Letter Identifier

    An additional letter added onto four-letter ticker symbols to ...
  5. N

    A Nasdaq stock symbol specifying that it is the company's third ...
  6. Preferred Stock

    A class of ownership in a corporation that has a higher claim ...
Related Articles
  1. Term

    The Advantages of Preferred Dividends

    Preferred dividends are cash distributions a company pays on its preferred shares.
  2. Term

    Keeping Securities Clear With Ticker Symbols

    A ticker symbol is a group of characters that represent a specific, publicly traded security that’s listed on an exchange.
  3. Professionals

    C. Why Do People Buy Common Stock?

    The main reason people invest in common stock is for capital appreciation. They want their money to grow in value over time. An investor in common stock hopes to buy the stock at a low price ...
  4. Professionals

    Preferred Stock

    Series 7 - Equities Section 3: Preferred Stock
  5. Options & Futures

    20 Investments: Preferred Stock

    What Is It? Preferred stock represents ownership in a company, but it usually does not give the holder voting rights (this may vary depending on the company). With preferred shares, investors ...
  6. Investing Basics

    The Different Between Preferred and Common Stock

    Preferred and common stocks are different in two key ways.
  7. Professionals

    Preferred Stock Features

    An individual investor looking into preferred stocks should carefully examine both their advantages and drawbacks.
  8. Investing

    What are Preference Shares?

    Preference shares, also referred to as preferred shares, are equity shares that give the shareholders certain rights ahead of common shareholders. For instance, when the corporation declares ...
  9. Professionals

    Corporate Securities: Preferred Stock

    Preferred stock is not issued by all companies. It is called "preferred" because its holders receive available dividend payments before common stockholders, and they also receive payments ...
  10. Investing Basics

    Stocks Basics: Different Types Of Stocks

    There are two main types of stocks: common stock and preferred stock. Common Stock Common stock is, well, common. When people talk about stocks they are usually referring to this type. In fact, ...
RELATED FAQS
  1. What are the fifth-letter identifiers on the Nasdaq?

    All of the companies traded on the Nasdaq have four-lettered tickers, which are representative of the actual company. For ... Read Answer >>
  2. Why do some stock symbols have three letters while others have four? What is the ...

    Stocks found on the New York and American Stock Exchange will normally have symbols with three letters or fewer. On the other ... Read Answer >>
  3. What is common stock and preferred stock?

    Learn about the differences between common and preferred shares. Explore situations where preferred shares have more favorable ... Read Answer >>
  4. How does preferred stock differ from company issued bonds?

    Discover the primary differences between preferred stock and corporate bonds, two income-generating investment vehicles issued ... Read Answer >>
  5. What is the difference between preferred stock and common stock?

    Preferred and common stocks are different in two key aspects. First, preferred stockholders have a greater claim to a company's ... Read Answer >>
  6. How are preferred stock dividends taxed?

    Discover the intriguing debt and equity characteristics of preferred stock, and learn about how preferred stock dividends ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center