Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,898,194,557 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Convertible Adjustable Preferred Stock
(redirected from Convertible Adjustable Preferred Stocks)

    0.01 sec.
Convertible adjustable preferred stock (Caps)
The interest rate on caps is adjustable and is pegged to Treasury security rates. They can be exchanged at par value for common stock or cash after the next period's dividend rates are revealed.

Convertible Adjustable Preferred Stock
A preferred stock that pays a dividend tied to U.S. Treasury securities. CAPS are convertible to common stock at par value at any time, especially after profits are announced but before dividends are paid. CAPS have the advantage of protecting the investor's principal while also allowing him/her to take advantage of upswings in the company's value.

convertible adjustable preferred stock (CAPS)
Preferred stock with a dividend tied to rates paid by U.S. Treasury securities. CAPS can be converted to cash or shares of stock when the following period's dividend is announced, a feature that adds liquidity and protects principal.


Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Feedback
Add definition
Mentioned in?   Financial browser?   Full browser?
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.