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.

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RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. What are some examples of preferred stock, and why do companies issue it?

    Understand the difference between preferred stock and common stock, and learn the primary reasons why companies issue preferred ... Read Answer >>
  5. What are the advantages and disadvantages of preference shares?

    Learn about the advantages and disadvantages of preference shares to both investors and issuing companies, including the ... Read Answer >>
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