Trust Preferred Security(redirected from Trust Preferred Stock Unit)
Trust Preferred Security
A security that has every feature of a debt security except for the fact that it is not actually debt. That is, TruPS have fixed coupons, a maturity date when the holder receives the face value, and an early redemption option. However, the holder does not lend the issuer money when he/she purchases a TruPS. Some companies favor TruPS to bonds and preferred stock because they are taxed like bonds but may be included as assets (and not liabilities) on a balance sheet.