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.

BREAKING DOWN '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.

  1. Directorate

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

    A business organization in which two or more individuals manage ...
  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. Limited Partnership Unit

    An ownership unit in a publicly traded limited partnership, or ...
  6. Real Estate Investment Trust - ...

    A REIT is a type of security that invests in real estate through ...
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. Stock Analysis

    Is BP's High-Yield Dividend Safe?

    Learn how receiving a greater than 7% yield from an oil major is a rare opportunity and one that comes with a fair share of potential dangers.
  5. Stock Analysis

    The 5 Best Dividend Stocks in the Healthcare Sector

    Learn about the top five dividend stocks of companies operating in the health care sector that generate substantial cash flows to afford high payouts.
  6. Stock Analysis

    The 6 Best Dividend Stocks in the Consumer Staples Sector

    Learn about the top six companies that make an attractive investment for investors looking for stocks for dividend income investing.
  7. Stock Analysis

    How To Start Your Own Private Equity Fund

    Here's a how-to guide on starting on starting a private equity firm.
  8. Stock Analysis

    The 5 Best Dividend Stocks in the Energy Sector

    Learn about the top five dividend companies that operate in energy-related industries that explore, develop, drill, extract and transport energy sources.
  9. Investing

    Hybrid Business: Rise of Nonprofits in Private Sector

    Businesses are embracing a mutually beneficial partnership wherein the ideals of the nonprofit sector are coupled with profit motive and capacity to scale.
  10. Professionals

    Top Tips for Prepping Your Practice for a Sale

    There’s much more to selling a business than finding the highest bidder and getting cash. Here's some help.
  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. Can mutual funds invest in MLPs?

    Mutual funds invest in a wide variety of securities, including master limited partnerships, or MLPs. Because MLPs exhibit ... Read Full Answer >>
  4. How are joint ventures regulated in the United States?

    Joint ventures are a very specific type of business arrangement. They can be organized in several different legal structures, ... Read Full Answer >>
  5. What kind of companies in the utilities sector offer the most stable dividends for ...

    Among the companies that offer the most stable dividends for risk-averse investors are large, solidly established U.S.-based ... Read Full Answer >>
  6. Can I buy insurance to reduce unlimited liability in a partnership?

    Partnership insurance is actually quite common. Most of the time, partners buy insurance to safeguard against the possibility ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Section 1231 Property

    A tax term relating to depreciable business property that has been held for over a year. Section 1231 property includes buildings, ...
  2. Term Deposit

    A deposit held at a financial institution that has a fixed term, and guarantees return of principal.
  3. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  4. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  5. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  6. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!