adjustable-rate preferred stock

adjustable-rate preferred stock definition - finance
Preferred stock in which the dividend changes according to a pre-set formula matched to movements in a benchmark such as the U.S. Treasury bill rate. Typically, these stock prices are less volatile than fixed-rate preferred stock. Adjustable-rate preferred stock is quite rare. May also be called variable rate stock or floating rate preferred stock.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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