Publicly Traded Partnership - PTP

AAA

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.

RELATED TERMS
  1. Directorate

    An organization headed by a director. In finance, directorate ...
  2. Limited Partnership Unit

    An ownership unit in a publicly traded limited partnership, or ...
  3. Public Company

    A company that has issued securities through an initial public ...
  4. Master Limited Partnership - MLP

    A type of limited partnership that is publicly traded. There ...
  5. Partnership

    A business organization in which two or more individuals manage ...
  6. Public-Private Partnerships

    A business relationship between a private-sector company and ...
RELATED FAQS
  1. What's the difference between publicly- and privately-held companies?

    Privately-held companies are - no surprise here - privately held. This means that, in most cases, the company is owned by ... Read Full Answer >>
  2. What does 'going public' mean?

    Going public refers to a private company's initial public offering (IPO), thus becoming a publicly traded and owned entity. ... Read Full Answer >>
  3. What are the advantages to structuring a business as a master limited partnership ...

    A master limited partnership (MLP) offers tax benefits for corporate entities that can reduce the cost of capital for capital-intensive ... Read Full Answer >>
  4. What are the drawbacks of using the Dividend Discount Model (DDM) to value a stock?

    Drawbacks of using the dividend discount model (DDM) include the difficulty of accurate projections, the fact that it does ... Read Full Answer >>
  5. Should I purchase a master limited partnership (MLP) in my retirement account?

    Most investors should not purchase units in a master limited partnership, or MLP, in their retirement accounts. MLPs offer ... Read Full Answer >>
  6. What are the tax implications of owning a master limited partnership (MLP)?

    There are significant tax benefits to owning units in a master limited partnership (MLP), although most investors do not ... Read Full Answer >>
Related Articles
  1. Retirement

    Discover Master Limited Partnerships

    These unique investments provide significant tax advantages.
  2. Mutual Funds & ETFs

    Income Funds 101

    Income funds don't have to be bonds, there are plenty to choose from. Read up on the types of income funds and whether they fit your investment needs.
  3. Retirement

    IPO Basics Tutorial

    What's an IPO, and how did everybody get so rich off them during the dotcom boom? We give you the scoop.
  4. Economics

    Where To Search For Yield Today

    It’s hard to miss that there has been a pronounced slowdown in the U.S. economy this year.
  5. Economics

    What is a Partnership?

    A partnership is an organization where two or more owners operate a business.
  6. Professionals

    Is it Safe to Invest in MLPs Again?

    The best bet right now for investors seeking to play a rebound in the price of oil may very well be ETFs that invest in energy MLPs.
  7. Mutual Funds & ETFs

    Should the YYY ETF Be on Your Radar?

    Why you should, or shouldn't, invest in YYY.
  8. Mutual Funds & ETFs

    How To Build A Bond Ladder?

    Bond laddering is a strategy used when building a portfolio: an investor can spread out interest rate risk and create a stream of cash flows for income.
  9. Economics

    What is the Income Effect?

    In economics, the income effect is the change in the consumption of goods caused by a change in income, whether income goes up or down.
  10. Retirement

    How To Move From Nest Egg To Income?

    Income vs. a nest egg is closely tied to what most of us are ultimately interested in for retirement – maintaining our standard of living and to travel.

You May Also Like

Hot Definitions
  1. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  2. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  3. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
  4. Adverse Selection

    1. The tendency of those in dangerous jobs or high risk lifestyles to get life insurance. 2. A situation where sellers have ...
  5. Wash Trading

    The process of buying shares of a company through one broker while selling shares through a different broker. Wash trading ...
Trading Center