Publicly traded partnership (PTP)

Publicly traded partnership (PTP),

Definition of Publicly traded partnership (PTP):

  1. A publicly traded partnership (PTP) is a business organization owned by two or more co-owners whose shares are regularly traded on an established securities market. A publicly traded partnership is a type of limited partnership managed by two or more general partners that can be individuals, corporations or other partnerships, and that is capitalized by limited partners who provide capital but have no management role in the partnership.

  2. A publicly traded partnership is very similar to a master limited partnership (MLP) but has some minor differences. PTPs, mostly in energy-related businesses, can offer investors quarterly income that receives favorable tax treatment.

  3. A limited partnership with interests that are traded on a public exchange such as the NASDAQ and Amex. PTP investments have higher yields (8%) compared to traditional stocks. It can also be referred to master limited partnerships (MLPs) even though some PTPs do not have structures that classify them as MLPs.

How to use Publicly traded partnership (PTP) in a sentence?

  1. In order to qualify as a PTP, 90% of the partnership's income must come from "qualifying" sources as outlined by the IRS.
  2. A publicly traded partnership (PTP) is a type of limited partnership wherein limited partners' shares are available to be freely traded on a securities exchange.
  3. PTPs are similar to master limited partnerships (MLPs) but differ in tax treatment and shareholder structure.

Meaning of Publicly traded partnership (PTP) & Publicly traded partnership (PTP) Definition