Debt Exchangeable for Common Stock (DECS)
A debt instrument that provides the holder with coupon payments in addition to an embedded short put option and a long call on the issuing company's stock. Investopedia Says:
DECS instruments provide the holder with the right to convert the security into the underlying company's common stock.
PRIDES securities are one example of debt exchangeable for common stock. Related Terms:
Call
Convertible Debenture
Convertibles
Dividend Enhanced Convertible Stock - DECS
Long
Naked Put
Preferred Redeemable Increased Dividend Equity Security - PRIDES Dividend Enhanced Convertible Stock (DECS)
Preferred stock that provides the holder with premium dividends in addition to an embedded short put option and a long call on the issuing company's stock. Investopedia Says:
Dividend enhanced convertible stocks provide the holder with the right to convert the security into the underlying company's common stock. Related Terms:
Convertible Debenture
Convertibles
Debt Exchangeable Common Stock - DECS
Long
Naked Put
Preferred Redeemable Increased Dividend Equity Security - PRIDES
Preferred Stock |