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CAPS

   Also found in: Dictionary/thesaurus, Medical, Legal, Acronyms, Idioms, Encyclopedia, Wikipedia, Hutchinson 0.04 sec.
CAPS

CAPS

CAPS
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.


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