auction-rate preferred stock

auction-rate preferred stock

A type of floating-rate preferred stock for which dividend payments are determined at periodic auctions conducted by the issuer rather than by short-term interest rates. Compare remarketed preferred stock.
References in periodicals archive ?
Several major bank holding companies chose to redeem portions of their outstanding auction-rate preferred stock rather than pay sharply higher rates.
Internal Revenue Service revenue ruling 90-27 resolves the questions of whether auction-rate preferred stock is debt or equity and whether a corporate holder of the stock is entitled to a dividends-received deduction.
Global book-entry has already been used by a variety of issuers for their auction-rate preferred stock and notes.