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Equity-LinKed Security (ELKS)
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An enhanced dividend, capped return instrument modeled on Preference Equity Redemption Cumulative Stock (PERCS). Unlike PERCS which are issued by the corporation which issued the underlying, ELKs are issued by a third party, frequently a financial intermediary. Also called Common-linked Higher Income Participation Security (CHIPS), Yield Enhanced Equity-Linked Debt Security (YEELDS), Performance Equity-Linked Redemption Quarterly Paid Security (PERQS), Convertible Money Market Units (CMMUs) (diagram), Market Index Deposits (MIDs), Synthetic PERCS. See Dividend Enhanced Convertible Stock (DECS).
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