Stocks 101
Share types: ON, PN, Units, common vs preferred
5 min
Not every share is identical. Companies can issue different classes of shares with different rights, and Brazil's system has its own vocabulary you must learn to read a ticker correctly.
Common vs preferred
The two core categories exist worldwide:
- Common shares — carry voting rights at shareholder meetings but rank after preferred holders for dividends. In Brazil these are ON shares (ordinárias).
- Preferred shares — usually carry little or no vote but get priority on dividends, often with a minimum payout. In Brazil these are PN shares (preferenciais).
Reading a Brazilian ticker
B3 encodes the share type in the number at the end of the ticker:
- 3 = ON (common). Example: VALE3, PETR3.
- 4 = PN (preferred). Example: PETR4, ITUB4.
- 11 = a Unit or an ETF/BDR (see below). Example: SANB11.
So PETR3 and PETR4 are the same company (Petrobras) but different securities with different rights and, often, slightly different prices.
Units
A Unit is a bundle that packages several shares together — for example a few ON plus a few PN shares traded as one instrument (ticker ending in 11, like SANB11). You buy the package as a single unit.
In the US
US share classes are simpler in spelling but similar in spirit. A company may have Class A and Class B shares with different voting power — for instance GOOGL (Class A, voting) vs GOOG (Class C, non-voting) for Alphabet. Always check what you are actually buying.
Why it matters
Two tickers for one company can pay different dividends and carry different votes. Before you buy, confirm you are getting the share class you intend.
This content is for educational and informational purposes only and is not investment, financial, tax or legal advice. Trading and investing carry risk, including the possible loss of capital. Any performance shown by third-party tools is hypothetical and not a promise of future results. Do your own research and consider professional advice before making any decision.