Financial Term of the day- “Preferred Equity Redemption Stock - PERC”

Posted on November 20, 2008
Filed Under Series - Financial Term Of The Day! |

 

PERC: Preferred stock with special provisions limiting the value of its convertible shares and the mandatory redemption value at maturity. 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.

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