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   Debt Exchangeable for Common Stock (DECS...
   















 

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Debt Exchangeable for Common Stock (DECS)

Stock and DECS Return Profilesi
Composition of DECS
Exchange Rights/Obligations at Maturity of DECS
A debt issue with an embedded short put and long call combined with an interest coupon. The issuer is the issuer (or a block holder) of the underlying common stock; and, the DECS issue is ultimately convertible into the common. Compare with Dividend Enhanced Convertible Stock (DECS) which is a preferred stock with a similar return pattern and the same acronym. Also called Automatically Convertible Enhanced Security (ACES), Preferred Redeemable Increased Dividend Equity Security (PRIDES), Protected Equity Participation (PEP), Fixed Income Equity-Linked Debt (FIELD).

Glossary * D