Preferred equity redemption stock

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Preferred equity redemption stock (PERC)

Preferred stock that converts automatically into equity at a stated date. A limit is placed on the value of the shares the investor receives.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Preferred Equity Redemption Stock

A convertible preferred stock that automatically converts to common stock or cash on a certain date. PERCs have higher, guaranteed returns than common stock; however, the issuer reserves the right to exchange them for common stock at any time.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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