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   Americus Trust
   















 

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Americus Trust

Sponsor of a technique to separate certain common stocks into a five-year warrant and a five-year covered call warrant writer's position at relatively low cost. No Americus Trust instruments have been created since 1987 largely because of an adverse change in a tax ruling. Although the last Americus Trust instruments terminated in 1992, the Americus Trust principle of decomposing a stream of returns has been widely incorporated in other derivative instruments. See Buy-write Option UNitary DerivativeS (BOUNDS), Preference Equity Redemption Cumulative Stock (PERCS), Prescribed Right to Income and Maximum Equity (PRIME) (diagram), Special Claim on Residual Equity (SCORE) (diagram), Termination Claim.

Glossary * A