adjustable-rate preferred stock

(redirected from Adjustable Rate Preferred Stock)
Also found in: Acronyms.

Adjustable-rate preferred stock (ARPS)

Publicly traded issues that may be collateralized by mortgages and MBS

Adjustable-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, which is adjusted quarterly. They may also be backed by mortgages or mortgage-backed securities. ARPS's tend to have stable prices because a drop in the common share's price is offset by a rise in bonds, and vice versa.

adjustable-rate preferred stock

References in periodicals archive ?
23, 1998--Citicorp announced today that on February 28, 1998 it will redeem for cash all outstanding shares of its Adjustable Rate Preferred Stock, Series 2 and 3, at a redemption price of $100 per share, together with accrued and unpaid dividends up to February 28, 1998.
SAN FRANCISCO--(BUSINESS WIRE)--April 28, 1995--BankAmerica Corporation (NYSE: BAC) announced today that it will redeem all of the outstanding shares of its Adjustable Rate Preferred Stock, Series 1 and its 6-1/2 percent Cumulative Convertible Preferred Stock, Series G, on May 31, 1995, in accordance with the terms under which they were issued.
The dividend rates on the adjustable rate preferred stocks are 6.

Full browser ?