Publicly Traded Partnership - PTP

Definition of 'Publicly Traded Partnership - PTP'


A business organization owned by two or more co-owners, that is regularly traded on an established securities market. A publicly traded partnership is a limited partnership managed by two or more general partners that can be individuals, corporations or other partnerships, and that is capitalized by limited partners who provide capital, but have no management role in the partnership.

Also known as master limited partnerships or MLPs.

Investopedia explains 'Publicly Traded Partnership - PTP'


A publicly traded partnership combines certain tax benefits of a limited partnership, with the liquidity of a publicly traded security. Publicly traded partnerships must engage in certain businesses, due to limitations in the U.S. Code, including businesses related to the use of natural resources, such as petroleum and natural gas extraction and transportation.

In order to qualify for publicly traded partnership status, the partnership must generate a minimum of 90% of its income from "qualifying" sources, as determined by the U.S. Internal Revenue Service (IRS). As partnerships, they avoid the statutory corporate income tax at state and Federal levels.



comments powered by Disqus
Hot Definitions
  1. Oil Reserves

    An estimate of the amount of crude oil located in a particular economic region. Oil reserves must have the potential of being extracted under current technological constraints. For example, if oil pools are located at unattainable depths, they would not be considered part of the nation's reserves.
  2. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  3. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
  4. Organic Growth

    The growth rate that a company can achieve by increasing output and enhancing sales. This excludes any profits or growth acquired from takeovers, acquisitions or mergers. Takeovers, acquisitions and mergers do not bring about profits generated within the company, and are therefore not considered organic.
  5. Family Limited Partnership - FLP

    A type of partnership designed to centralize family business or investment accounts. FLPs pool together a family's assets into one single family-owned business partnership that family members own shares of. FLPs are frequently used as an estate tax minimization strategy, as shares in the FLP can be transferred between generations, at lower taxation rates than would be applied to the partnership's holdings.
  6. Yield Burning

    The illegal practice of underwriters marking up the prices on bonds for the purpose of reducing the yield on the bond. This practice, referred to as "burning the yield," is done after the bond is placed in escrow for an investor who is awaiting repayment.
Trading Center