Auction Preferred Stock

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Auction Preferred Stock

A preferred stock with an adjustable dividend that changes every seven weeks according to the results of a Dutch auction. Every preferred stock has a guaranteed dividend; an auction market preferred stock is distinguished by the fact that the amount of its dividends changes from time to time. An auction market preferred stock is beneficial for some investors because the auction reveals the current market yield every seven weeks, which helps in investment decisions on whether to buy, sell, or hold. It is also called an auction rate preferred stock or a Dutch auction preferred stock.
References in periodicals archive ?
Auction market preferred stocks 2,800 shares series M7;
s taxable auction market preferred stocks 2,730 shares series M7, and 2,730 shares series T7 are rated 'AAA' by Fitch Ratings.
s taxable auction market preferred stocks 2,800 shares series M7, 2,800 shares series T7, 2,800 shares series W7, 2,800 shares series TH7, 2,800 shares series F7, 4,000 shares series W28 and 4,000 shares series TH28 are rated 'AAA' by Fitch Ratings.