Distinguishing Preferred Share Classes and Depositary Shares

Summary

The discussion explains why two ticker symbols associated with one company can refer to different securities. It identifies one symbol as Series A preferred shares and the other as depositary shares representing a fractional interest in Series B cumulative perpetual preferred stock. Thus, shared corporate identity does not imply identical share class, economic rights, or unit of ownership.

The answer cautions that general explanations of preferred shares may not apply uniformly to every issue. For the specific securities discussed, the distinction comes from their class designations and the depositary-share structure, with the latter’s conditions described in a company announcement referenced by the original discussion. The document does not provide detailed dividend, voting, redemption, or seniority terms, so those features should not be inferred from the ticker symbols alone; investors need the relevant offering documents to compare the securities fully.

Key ideas

• Different tickers for one issuer may represent distinct security classes.
• Preferred shares can differ by series and financing terms.
• Depositary shares represent fractional interests in underlying preferred shares.
• Ticker symbols alone do not establish an issue’s full economic or legal terms.

Tags

# What is the difference between two ticker symbols for the same company?


# What is the difference between two ticker symbols for the same company?












https://finance.yahoo.com/quote/XOMAP/profile?p=XOMAP https://finance.yahoo.com/quote/XOMAO/profile?p=XOMAO

Both of the above two ticker symbols are for the same company (XOMA Corporation). It is not clear what their differences are. Could anybody show me what their differences are?

## Answer by Bob Jansen (score 3)

https://quant.stackexchange.com/a/66675

One is preferred stock and the other is not. I don't know the specifics of XOMA.

The key takeaways on the linked page are not entirely correct. These are all things that might be true but are not necessarily the case. Some of them will apply though.

## Answer by Pleb (score 3)

https://quant.stackexchange.com/a/66676

In addition to @BobJansen's answer, I found this information:

- XOMAP is the ticker for the Series A preferred shares of the corporation. Aka the first round of capital financing the corporation did.

- XOMAO is the ticker for the company's depository shares representing 1/1000th fractional interest in a share of the company's Series B Cumulative Perpetual Preferred stock (see also this link for the definition of the cumulative perpetual preferred stock). The above information and more about the certain conditions applied to these depository shares are found from this announcement.

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.