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Mandatorily convertible preferred stock

A type of preferred stock that carries a higher dividend yield than that of other preferred stock and gives the holder a long call and a short put, which means the stock is convertible into common shares of the issuer.

This preferred stock is marketed under different names, such as dividend enhanced convertible stock (DECS), preferred redeemable increased dividend equity securities (PRIDES), stock appreciation income-linked securities (SAILS), and yield enhanced stock (YES).

Translations

Synonyms and variations

  • DECS
  • Dividend enhanced convertible stock
  • Preferred redeemable increased dividend equity securities
  • PRIDES
  • SAILS
  • Stock appreciation income-linked securities
  • YES
  • Yield enhanced stock

See also