Preferred equity redemption stock (PERC)

Definition:

Preferred stock that converts automatically into equity at a stated date. A limit is placed on the value of the shares the investor receives.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Money market

Money markets are for borrowing and lending money for three years or less. The securities in a money market can be U.S.government bonds, Treasury bills and commercial paper from banks and companies.

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