What is ‘L’

The fifth character added to a stock symbol listed on the Nasdaq to denote a miscellaneous situation. When L is present as the fifth letter of a Nasdaq ticker symbol, it indicates a subordinate issue including certificates of participation, preferred participation and stubs, which represents a stock that is made up of the converted bonds of a distressed company.

Explaining ‘L’

Generally, common stock will have a four-letter symbol on the Nasdaq. When a fifth letter is added, such as an L or Z, it indicates that the shares are different or special in some way. Depending on the letter used that may mean they are non-voting shares, they are rights, it is a second or third offering or that its part of a reorganization.

Further Reading

  • An empirical comparison of published replication research in accounting, economics, finance, management, and marketing – www.sciencedirect.com [PDF]
  • The impact of math background on performance in managerial economics and basic finance courses – www.jstor.org [PDF]
  • The Economics and Financing of Education. A Systems Approach – eric.ed.gov [PDF]
  • Trends in park tourism: Economics, finance and management – www.tandfonline.com [PDF]
  • On economics and finance – www.jstor.org [PDF]