variable-rate preferred stock

Variable-Rate Preferred Stock

A preferred stock paying a dividend that varies from time to time. Usually, the dividend rate is based on an index or on the interest rate on a Treasury security. They may also be backed by mortgages or mortgage-backed securities.

variable-rate preferred stock

References in periodicals archive ?
Significant new types of preferred stock introduced since the early 1980s include variable-rate preferred stock, money-market (auction-rate) preferred stock, PIK (payment-in-kind) preferred stock, exchangeable preferred stock, and monthly-income preferred stock (MIPS).
Innovations in the use of variable-rate preferred stock likewise have served to narrow the difference between debt and equity.
The VMTP Shares are variable-rate preferred stock with three or three-and-a-half year terms, as applicable, and are privately placed.
The VMTP Shares are variable-rate preferred stock with a five-year term, and were privately placed.

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