J

80-20 Rule

What is J

J is a designation appearing as the fifth letter for shares listed on the Nasdaq, specifying that the share has voting rights. It is a temporary suffix used to signal a shareholders’ voting situation.

DISTRIBUTION J

J is added as the fifth letter for securities listed on Nasdaq, indicating that the issue has voting rights. J also reveals that there is more than one common share issue of a business.

J and voting shares

J indicates that an issue of shares has voting rights, used temporarily during a shareholders’ voting situation. The designation is deleted following the shareholders’ voting situation.

While most corporate shares vote, a few companies offer non-voting shares to the public. For example, Google offers two classes of actions to the public. One is voting and the other is non-voting.

Common shares with voting rights are considered shares with voting rights. The majority of the common shares have voting rights. Voting shares, which carry voting rights, allow a shareholder to vote during a shareholders’ voting situation. Items that may require a shareholder vote include voting on the board of directors, or corporate transactions such as mergers.

Non-voting shares

Non-voting shares do not have a vote when shareholders vote, regardless of the number of shares they own. Companies wishing to keep control of a company in the hands of the founders or the management can issue shares without voting rights.

Another tactic is to issue different classes of shares with different voting rights. That is, one share class can have one vote per share, while another class can have 10 votes per share. This class is defined as super majority shares.

J and other letters

The Nasdaq uses a variety of letters to distinguish share issues and the rights that accompany them. For example, H at the end of a stock symbol indicates that the issue is the company’s second preferred bond. The K at the end of a symbol means that the action is not voting.

J and D are the only two temporary letter designations. D represents a new problem, noting that it is a corporate reorganization. The letter E means the company is past due with a filing with the SEC, while C means that the company does not meet all of the Nasdaq registration requirements. An A or B means that these are the company’s A or B shares, respectively, and most of the various other letters deal with a preferred, convertible or rights issue.

Meanwhile, the New York Stock Exchange (NYSE) uses a fourth letter to identify the unique cases where the issue differs from normal conditions. The NYSE uses different codes from those of Nasdaq.

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