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auction-rate preferred stock

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auction-rate preferred stock
A type of floating-rate preferred stock for which dividend payments are determined at periodic auctions conducted by the issuer rather than by short-term interest rates. Compare remarketed preferred stock.


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Corporate IRS RULES ON AUCTION-RATE PREFERRED STOCK Internal Revenue Service revenue ruling 90-27 resolves the questions of whether auction-rate preferred stock is debt or equity and whether a corporate holder of the stock is entitled to a dividends-received deduction.
This action is designed to help the fund preserve the benefits of leverage over time for common shareholders while also providing liquidity at par for current holders of the fund's auction-rate preferred stock (ARPS, also known as MuniPreferred[R]).
NEW YORK -- Fitch Ratings has affirmed BlackRock Preferred & Corporate Income Strategies Fund's auction-rate preferred stock series M7 and T7 at 'AAA'.
 
 
 
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