Term: Q (Nasdaq Suffix)
Type: Ticker symbol designation
Used in: Nasdaq-listed U.S. equities
Indicates: The company is in bankruptcy proceedings
Placement: Fifth letter in a five-character stock ticker (e.g., ABCDQ)
Definition
The letter Q is a Nasdaq suffix used in stock ticker symbols to indicate that the company has filed for bankruptcy protection under U.S. law. This designation appears as the fifth letter in the stock’s symbol and signals that the company is undergoing restructuring but that its shares may still be publicly traded.
Investors should consider Q-suffixed stocks extremely risky, as these shares are often highly volatile and may be delisted or canceled during reorganization.
Key Features
- Bankruptcy Indicator: Signals a company has filed for bankruptcy
- Appears As: Fifth letter in the ticker (e.g., ABCDQ)
- Not Delisted Yet: Shares may still trade on Nasdaq or OTC
- Temporary Status: The suffix is removed if the company exits bankruptcy or is liquidated
- Common in Retail & Energy Sectors: Where high-debt firms are prone to restructuring
Common Use Cases
- Traders monitoring distressed or speculative stocks
- Bankruptcy-focused hedge funds and investors
- Legal filings and financial disclosures
- Analysts tracking risk or restructuring trends
Benefits or Advantages
- Increases transparency around financial distress
- Alerts investors to heightened risk levels
- Supports market integrity and disclosure
- Allows restructuring firms temporary access to capital markets
Examples or Notable Applications
Hertz Global Holdings (HTZQ): Filed for Chapter 11 in 2020
JC Penney (JCPQ): Ticker changed during its bankruptcy phase
Washington Mutual (WAMUQ): After collapse in the 2008 crisis
Once a company reorganizes or is liquidated, the Q suffix is removed or the stock is delisted entirely
External Links
- Investopedia: Nasdaq Fifth Letter Codes
- SEC: Public Companies in Bankruptcy
- Nasdaq Glossary of Symbol Suffixes
This post is for informational purposes only and does not constitute financial or legal advice.