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Auction Rate Preferred Stock (ARPS)
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A floating rate preferred with the dividend date reset by Dutch auction, typically every 49 days. The interest rate is usually subject to a maximum and the issue is puttable at each auction. Also designated by the following names and acronyms: Auction Market Preferred Stock (AMPS), Adjustable Rate Preferred Stock (ARPS), Dutch Auction Rate Transferable Securities (DARTS) Preferred Stock, Market Auction Preferred Stock (MAPS), Money Market Preferred Stock (MMPS), Remarketed Preferred Stock, Short-Term Auction Rate (STAR). Other versions fix the coupon rate for a longer period. Examples include Flexible Auction Rate Preferred Stock (FLEX) and similar products with diverse acronyms. See also STated Rate Auction Preferred Stock (STRAPS).
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