floating-rate preferred stock

Floating-Rate Preferred Stock

A preferred stock paying a dividend that varies from time to time. Usually, the dividend rate is the same as the interest rate on a Treasury security. They may also be backed by mortgages or mortgage-backed securities. Floating-rate preferred stocks tend to have stable prices because a drop in the common share's price is offset by a rise in bonds, and vice versa.

floating-rate preferred stock

A special and unusual type of preferred stock with a dividend that is reset at specified intervals according to a predetermined formula. Floating-rate preferred stock contrasts with most preferred stock issues that pay a fixed quarterly dividend. Floating-rate preferred stock issues do not generally fluctuate much in price because the dividend is automatically adjusted to keep the shares selling near to par. Also called adjustable-rate preferred stock, variable-rate preferred stock.
References in periodicals archive ?
Mengedoth said the fourth quarter dividend on the company's privately placed 56,000 shares of floating-rate preferred stock is $147,350.
E[acute accent]-- Floating-rate preferred stock, series A 'A-';
0 million, or 500 shares, of Richmond County Capital Corporation Series C Non-Cumulative Exchangeable Floating-Rate Preferred Stock, stated value $100,000 per share (the "Series C Preferred Stock").