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Dutch Auction Interest and Dividend Reset
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Provisions of some floating rate notes and adjustable rate preferreds that determine rates by reoffering the securities in the market place on each reset date. The organization conducting the Dutch auction accepts bids and allocates notes or preferred shares to successful bidders at the highest market clearing price (lowest successful bidder's yield). Among the instruments with similar features are Market Auction Preferred Stock (MAPS), Auction Rate Note, Money Market Preferred Stock (MMPS). See also Lender's Option- Borrower's Option (LOBO), STated Rate Auction Preferred Stock (STRAPS).
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