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Auction market preferred stock
A type of adjustable rate preferred stock whose dividends are set on a regular basis through an auction, typically every few weeks.
(1) The dividend rate is a short-term rate based on money market rates at the time of the auction.
(2) This type of preferred stock is marketed under different names, such as auction market preferred stock (AMPS), cumulative auction market preferred stock (CAMPS), Dutch auction rate transferable securities (DARTS), market auction preferred stock (MAPS), money market preferred stock (MMPS), remarketed preferred stock, and short-term auction rate (STAR).
(3) A Dutch auction is a process in which the price of an item is lowered gradually until it meets a responsive bid and is sold.
Synonyms and variations
- AMPS
- APS 1.
- ARPS 2.
- Auction preferred stock
- Auction rate preferred stock
- CAMPS
- Cumulative auction market preferred stock
- DARTS
- Dutch auction
- Dutch auction preferred stock
- Dutch auction rate transferable securities
- MAPS
- Market auction preferred stock
- MMPS
- Money market preferred stock
- Remarketed preferred stock
- Short-term auction rate
- STAR