PEPS


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PEPS

A participating preferred stock that may be converted to common stock by a certain date. Like all participating preferred stock, a PEPS entitles the shareholder to a certain minimum dividend. The dividend paid may be higher than the minimum, depending upon company performance. In any case, these dividends must be paid before any dividends are paid on common stock; if a company is unable to pay dividends on participating preferred stock, stockholders have the right to force the liquidation of the company. The conversion feature of a PEPS gives it a great deal of flexibility for the shareholder.

PEPS

References in periodicals archive ?
First, go direct to the firm selling the PEP to find out if there are any discounts.
Everyone over 18 has had the right to put money, or add money, into a PEP each tax year since 1986-87.
If you're not prepared to take any risk with your money, then steer clear of PEPs.
Indeed, all investors should regularly check to see if their Pep portfolio is still providing top-performance, value-for-money flexibility and quality of service.
As PEPs will be instantly transferable into ISAs in April next year, it makes sense to make the most of current tax breaks.
Financial advisers Chase de Vere's annual PEP Guide gives details of all general PEPs and their performances so far.
Celtic Investment Services said the club were the first in the UK to have their own PEP.
M&G, CGU and Aberdeen Prolific are believed to be among the companies enjoying the greatest success with their corporate bond Peps this year.
If you are expecting just one windfall and already have a PEP which won't take your windfall, consider a single company PEP.
Russell Devitt of Direct Line said: "A PEP is an excellent way for people to invest either a lump sum or on a regular basis, but at the moment the product is poorly understood.
Eighty per cent of people who say they are likely to take out a Pep before the April 5 deadline will be opting for one to grow their capital over the long-term.
But Labour has committed itself to keeping PEPs although it may put a ceiling on investment limits.