What Is P (as a Fifth-Letter Identifier)?
When used as the fifth letter in a ticker symbol, the letter P indicates that a security is a first-preferred stock issue. Preferred shares are equity shares that behave slightly like fixed income in that they grant higher priority than common shareholders and pay regular dividends higher than on common shares. A first-issue preferred indicates that it has priority over second- or following issues.
Referred to as a fifth-letter identifier, "P" and many other letters of the alphabet can be used to indicate that a security is not common stock, but has a special characteristic.
Key Takeaways
- When used as the fifth letter in a ticker symbol, the letter P indicates that a security is a first-preferred issue.
- Fifth-letter identifiers are found on stocks listed on the Nasdaq and Over-the-Counter Bulletin Board (OTCBB).
- Preferred stock ownership comes with greater rights than ownership of common stock.
Understanding P as a Fifth-Letter Identifier
Fifth-letter identifiers are found on stocks listed on the Nasdaq and Over-the-Counter Bulletin Board (OTCBB). There are several different fifth-letter identifiers, ranging from A to Z, and each letter represents a different characteristic. While P indicates a first preferred stock, other examples of such characteristics and their identifiers include Class A shares ("A"), Class B shares ("B"), new issues ("D"), and foreign ("F").
The majority of the letters denote the same characteristics whether the stock is listed on the Nasdaq or OTCBB, but there are a few differences between Nasdaq fifth-letter identifiers and OTCBB fifth-letter identifiers. For instance, the OTCBB uses the letter "Q" to denote a company involved in bankruptcy proceedings, while the Nasdaq no longer does. In such a case, P refers to first-preferred stock on both exchanges.
Preferred stock ownership 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 if a company liquidates. However, bondholders have priority over preferred stockholders, and preferred stock dividends can be withheld at the company's discretion. Preferred shares usually do not carry voting rights, and most are callable, which means the issuer can redeem the shares at any time.
On the New York Stock Exchange (NYSE) stock tickers with special circ*mstances will instead often use a fourth letter.
Priority Matters
Bondholders, and especially bondholders of secured bonds have the highest priority when it comes to repayment or claims against a company. Common stock has the least priority. Preferreds fall somewhere in the middle. This is known as absolute priority or liquidity preference. In the event of a bankruptcy, preferred shareholders would be paid back in full before common stockholders receive anything.
When a company has more than one simultaneous issues of preferred stock, they are ranked according to priority.Those who hold first-preferred stock have seniority, particularly with respect to dividends and assets, over other preferred stockholders.
Preferreds thus also have an internal preference order, that will include those shares that are denoted as second-preferred stock (marked with the fifth-letter identifier "O"), third-preferred stock (denoted with "N"), and fourth-preferred stock (denoted with "M"). However, first-preferred shareholders are still subordinate to prior-preferred stockholders and bondholders.
FAQs
When used as the fifth letter in a ticker symbol, the letter P indicates that a security is a first-preferred issue. Fifth-letter identifiers are found on stocks listed on the Nasdaq and Over-the-Counter Bulletin Board (OTCBB). Preferred stock ownership comes with greater rights than ownership of common stock.
What is the fifth letter identifier? ›
What Are Fifth-Letter Identifiers in a Stock Symbol? The Nasdaq makes use of a fifth letter that comes after the main stock ticker symbol in order to denote certain features, special characteristics, or limitations of that particular issue of securities. This letter will appear after a period, in the form XXXX.
What is the 5th letter in the stock symbol? ›
The fifth letter in a five-letter symbol provides information about the company. Sometimes, the fifth letter identifies the type of stock, or the type of security: A or B: represent A and B class shares for NASDAQ stocks. V or Y: represent American Depository Receipt (ADR) shares.
What does p stand for in trading 212? ›
p (or GBX) it's in pence. £ (or GBP) in pounds.
How does ticker tape work? ›
Brief History. First, a tick is any movement, up or down, however small, in the price of a security. Hence, a ticker tape records each transaction on a securities exchange, including trading volume, onto a narrow strip of paper (tape) or its virtual equivalent on screens.
What was the name of the fifth letter? ›
E, or e, is the fifth letter and the second vowel letter of the Latin alphabet, used in the modern English alphabet, the alphabets of other western European languages and others worldwide.
What is the fifth letter in the US alphabet? ›
What does the D mean in fidelity? ›
Relevant dates will be displayed with two icons, 'D' indicates dividends and 'E' indicates earnings. Clicking on the company symbol and event will open a new tab to the Research page for that event.
What does the Q in NASDAQ stand for? ›
Financial Terms By: Q. Q. Fifth letter of a Nasdaq stock symbol specifying that it is in bankruptcy proceedings. Jun 6, 2024. Market: Closed.
What does the D next to a stock mean? ›
D. Fifth letter of a NASDAQ stock symbol specifying that it is a new issue, such as the result of a reverse split.
When used as the fifth letter in a ticker symbol, the letter P indicates that a security is a first-preferred stock issue. Preferred shares are equity shares that behave slightly like fixed income in that they grant higher priority than common shareholders and pay regular dividends higher than on common shares.
What happens to my shares if Trading 212 goes bust? ›
Your funds and assets are protected by the Financial Services Compensation Scheme (FSCS). The compensation is for up to £85 000. You can learn more about how the FSCS operates here. Your funds and assets are protected by the Investors Compensation Fund (ICF) for up to €20,000.
How credible is Trading 212? ›
Trading 212 is a trusted broker registered in England and Wales, and is authorized by the Financial Conduct Authority (FCA). It is also registered in Bulgaria and is regulated by the local Financial Supervision Commission.
Is it safe to use ticker tape? ›
How safe is Tickertape? It is an Indian financial analytics platform that complies with industry data security and privacy standards. However, like any online platform, it's essential to exercise due diligence and caution while using it.
Is ticker tape free or paid? ›
The Tickertape Pro trial lasts for 14 days - after which, it gets automatically renewed for the next 1 month at a fee of Rs. 249.
How to read stock ticker tape? ›
Electronic ticker tapes also use green to indicate a higher trading price and red to indicate a lower price, and blue or white to indicate no change. Before 2001, trading prices were displayed in fractions, but since 2001, all prices are shown in decimals.
Why do some stocks have 5 letters? ›
For common stock issuances, Nasdaq assigns symbols between one and four characters in length. For subordinate issue classes, Nasdaq assigns five character symbols. Within the symbols, the fifth and last character relays basic information about the issue class or issue type as outlined in the table below.
What is the 1 to 5 letter symbol used to identify companies being traded? ›
A “Ticker Symbol” is a unique one to five letter code used by the stock exchanges to identify a company. It is called a ticker symbol because the stock quotes used to be printed on a ticker tape machine that looked like the images below.
What is the acronym for the top 5 stocks? ›
FAANG is an acronym for the five best-performing American tech stocks in the market: Meta (formerly Facebook), Apple, Amazon, Netflix, and Alphabet (formerly Google). The Nasdaq 100 Index Includes Companies From Various Sectors Except for Companies in the Financial Sector.
What are the letters for stocks? ›
Some examples of US Stock symbols include:
- A – Agilent Technologies.
- AAPL – Apple.
- BRK. (A/B) - Berkshire Hathaway (Class A or B shares marked by a letter following period, BRK. A or BRK.B)
- C – Citigroup.
- GOOG – Alphabet (parent company of Google)
- HOG – Harley-Davidson.
- HPQ - Hewlett-Packard.
- INTC – Intel.
