Term: K (Nasdaq Suffix)
Type: Ticker symbol designation
Used in: Nasdaq-listed U.S. equities
Indicates: Stock has no voting rights
Placement: Fifth letter in a five-character stock ticker (e.g., ABCDK)
Definition
The letter K is a Nasdaq suffix used in stock ticker symbols to indicate that the share class does not include voting rights. It appears as the fifth letter in a stock symbol and helps investors distinguish between voting and non-voting shares. This designation is important for understanding shareholder influence and corporate governance.
Key Features
- Fifth-Letter Code: Appended to a four-letter ticker symbol (e.g., ABCDK)
- No Voting Rights: Indicates shareholders cannot vote on company decisions
- Nasdaq Standard: Part of Nasdaq’s system for labeling share class differences
- Clarifies Governance Structure: Useful for institutional investors and analysts
- Visible in Data Feeds: Displayed in trading platforms and financial databases
Common Use Cases
- Distinguishing between voting and non-voting share classes
- Analyzing equity structure in dual-class companies
- Screening shares for shareholder rights
- Index construction and corporate governance evaluation
Benefits or Advantages
- Enhances transparency in capital structure
- Helps investors avoid confusion between share classes
- Supports portfolio screening based on voting power
- Important for governance-focused investing strategies
Examples or Notable Applications
A company may issue two share classes: ABCDJ (voting) and ABCDK (non-voting). Alphabet Inc. (Google) uses different symbols (e.g., GOOGL vs. GOOG) to separate voting from non-voting shares. Nasdaq’s suffixes standardize this differentiation across the market.
External Links
This post is for informational purposes only and does not constitute financial or legal advice.