Preferred Equity Redemption Stock (PERC)
Preferred stock with special provisions limiting the value of its convertible shares and the mandatory redemption value at maturity. Investopedia Says:
PERCs generally offer a higher yield than common stocks. However, they can be called at any time, generally at a higher price than the cap price. When the PERC matures, it must be redeemed into either cash or underlying shares. Related Terms:
Convertible Bond
Convertible Preferred Stock
Preferred Stock
Prides
Synthetic |