Z

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Caroline Banton
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Caroline Banton has 6+ years of experience as a freelance writer of business and finance articles. She also writes biographies for Story Terrace.
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Updated November 24, 2020
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Katrina Munichiello
Katrina Avila Munichiello
Fact checked by Katrina Munichiello
Full Bio
Katrina Ávila Munichiello is an experienced editor, writer, fact-checker, and proofreader with more than fourteen years of experience working with print and online publications. In 2011, she became editor of World Tea News, a weekly newsletter for the U.S. tea trade. In 2013, she was hired as senior editor to assist in the transformation of Tea Magazine from a small quarterly publication to a nationally distributed monthly magazine. Katrina also served as a copy editor at Cloth, Paper, Scissors and as a proofreader for Applewood Books. Since 2015 she has worked as a fact-checker for America's Test Kitchen's Cook's Illustrated and Cook's Country magazines. She has published articles in The Boston Globe, Yankee Magazine, and more. In 2011, she published her first book, A Tea Reader: Living Life One Cup at a Time (Tuttle). Before working as an editor, she earned a Master of Public Health degree in health services and worked in non-profit administration.
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What Is Z?

The term Z refers to a designation for Nasdaq-listed securities that identifies a miscellaneous entity. This extension is just one of the fifth-letter identifiers that appear after a company's ticker symbol. It indicates that the stock is different from single issues of common or capital stock. The reasons for a Z-designation tend to vary and may include things like depositary receipts or units. The reasons for a Z designation aren't always obvious and usually require a little research.

Key Takeaways

  • Z is a fifth-letter identifier for Nasdaq stock symbols.
  • It indicates that a stock is different from a single issue of common or capital stock.
  • Z might indicate that the issue is a depositary receipt, stub, additional warrant, or unit.

Understanding Z

Companies must choose a unique ticker symbol when they want to list on a stock exchange. This symbol is made up of a series of characters that identifies the company's stock. It allows traders to execute transactions for these securities. The ticker symbol also identifies the stock exchange on which a particular security trades. For instance, a ticker with three letters trades on the New York Stock Exchange (NYSE), while those with four letters trade on the Nasdaq.

These ticker symbols may come with suffixes that alert shareholders to specific situations about the stock itself. Suffixes for Nasdaq-listed securities appear as fifth-letter identifiers and follow a dot after their ticker symbols. When a fifth letter appears, it identifies the issue as different from a single issue of common stock or capital stock.

The Z-letter suffix identifies a variety of miscellaneous entities. Unlike other designations, this one can be fairly vague, so it's up to individuals investors and traders to do their due diligence. Doing a little research can help them figure out why the suffix is added to the end of the security's ticker symbol.

As mentioned above, the letter Z identifies securities that are not single issues of common or capital stock. It may indicate that the security is a depositary receipt, stub, additional warrant, or another type of unit. Z historically had a different meaning in futures trading, though, where it indicated a delivery month of December until new options symbology was introduced in 2010.

The NYSE uses fourth-letter identifiers to distinguish unique instances when certain issuances vary from normal conditions.

Z vs. Other Letter Designations

The Nasdaq uses a variety of letters or fifth-letter designations to distinguish stock issuances and the rights that come along with them. Z is just one of those designations. Like Z, the letter L also identifies miscellaneous entities. This identifier denotes certificates of participation (COPs), preferred participation, and stubs.

If you see a ticker symbol with the letter P after a dot, it means that the issuance is the preferred first issue of a company, while the letter O is the second preferred issue. The letter E means the company is delinquent with a Securities and Exchange Commission (SEC) filing, while K denotes a series of non-voting stock. The letter F means that the stock is a foreign issue.

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. Clark Financial. "NASDAQ 5TH LETTER STOCK SYMBOL CODES." Accessed Dec. 24, 2020.

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