adjustable-rate preferred stock

Also found in: Acronyms.

Adjustable-rate preferred stock (ARPS)

Publicly traded issues that may be collateralized by mortgages and MBS

Adjustable-Rate Preferred Stock

A preferred stock paying a dividend that varies from time to time. Usually the dividend rate is the same as the interest rate on a Treasury security, which is adjusted quarterly. They may also be backed by mortgages or mortgage-backed securities. ARPS's tend to have stable prices because a drop in the common share's price is offset by a rise in bonds, and vice versa.

adjustable-rate preferred stock

References in periodicals archive ?
30, 1991, which were filed with the SEC in connection with the proposed merger with First of America Bank Corporation (NYSE: FOA), the SEC staff disagreed with the timing of the company's decision to realize a loss on its investment in Student Loan Marketing Association adjustable-rate preferred stock.
6875 for Capital Holding's adjustable-rate preferred stock will be payable January 15, 1992, to shareholders of record on December 31, 1991.