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Dividend Enhanced Convertible Stock (DECS)
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A preferred stock issue with an embedded short put and long call and a higher than market dividend rate. The issuer is the issuer (or a block holder) of an underlying common stock; and, the DECS issue is ultimately convertible into the underlying common. Compare with Debt Exchangeable for Common Stock (DECS) which is a variation of convertible debt with a similar return pattern and the same acronym. Also called Yield Enhanced Stock (YES), Preferred Redeemable Increased Dividend Equity Security (PRIDES). See Equity-LinKed Security (ELKS), Automatically Convertible Enhanced Security (ACES).
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