Remarketed Preferred Stock

Remarketed Preferred Stock

A preferred stock with an adjustable dividend that changes every so often on the decision of a designated agent. Every preferred stock has a guaranteed dividend; what distinguishes remarketed preferred stock is that the amount of its dividends changes from time to time. A dividend changes so that the preferred stock may always be resold at its original offer price. See also: Auction rate preferred stock.

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remarketed preferred stock

A type of preferred stock in which the dividend rate is determined periodically by a remarketing agent. The agent resets the dividend rate so that the preferred stock can be tendered at par or resold at the original offering price. Compare auction-rate preferred stock.