| Convertible
Adjustable Preferred Stock - CAPS |
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A
preferred, floating rate issue, whose interest rate is tied to Treasury
security rates. They can be exchanged for common stock or cash after
next period's dividend rates are announced. The shares received upon
conversion are equal in market value to the par value of the preferred.
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The
convertible feature is designed to protect the preferred investor's
principal and provide greater liquidity in case the issuer's credit
rating declines. |
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Dictionary
