P
Perpetual Preferred Stock (Perp)
P
Perpetual Preferred Stock (Perp)
A fixed rate equity instrument with no
participation
in the issuer's profit and no promise of
principal
repayment. Issued directly or in
conversion
of other instruments by banks subject to the Basle
Capital Adequacy Directive
. Perps are counted as
Tier I capital
. See also
Convertible Capital Note or Security
.
Glossary
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P