Preferred Redeemable Increased Dividend Equity Security(redirected from Preferred Redeemable Increased Dividend Equity Securities)
Preferred Redeemable Increased Dividend Equity Security
A forward contract to buy a certain security and an interest-bearing deposit at a certain time for a certain price. PRIDES operate much like mandatory convertible bonds, but have different structures. PRIDES allow an investor to receive the interest on the deposit at regular intervals and also take advantage of the underlying security when the forward contract matures. Whoever holds the PRIDES at maturity must purchase the underlying security. They were introduced by Merrill Lynch.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved