Convertible Adjustable Preferred Stock - CAPS

外汇网2021-06-19 20:54:29 68

A pferred, floating rate issue, whose interest rate is tied to Treasury security rates. They can be exchanged for common stock or cash after the next period's pidend rates are announced. The shares received upon conversion are equal in market value to the par value of the pferred.

|||The convertible feature is designed to protect the pferred investor's principal and provide greater liquidity in case the issuer's credit rating declines.

标签：