AUCTION-RATE PREFERRED STOCK Definition

Bookmark and Share

AUCTION-RATE PREFERRED STOCK is preferred stock issues in which dividends are reset every 49 days through a Dutch Auction bidding process. These securities are known by many names coined by the underwriters who bring them to market. Other names are: Auction Market Preferred Stock (AMPS), Cumulative Auction Market Preferred Stock (CAMPS), Dutch Auction-Rate Transferrable Securities (DARTS), Floating-Rate Auction Preferred Stock (FRAPS), Market Auction Preferred Stock (MAPS), Rate Adjustable Preferred Stock (RAPS), Short-Term Auction-Rate Stock (STARS) and Money Market Preferred (MMP).

Learn new Accounting Terms

DEMUTUALIZATION refers to the de-mutualizing of an insurance company. The proceeds from such an event are normally distributed to the policyholders in the form of cash, shares, or a combination thereof in the surviving entity.

OPERATING COST is the expense of maintaining property (e.g., paying property taxes and utilities and insurance) it does not include depreciation or the cost of financing or income taxes. Also known as OPERATING EXPENSE.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.