Preferred Equity Redemption Stock - PERC

Preferred Equity Redemption Stock - PERC
Preferred stock with special provisions limiting the value of its convertible shares and the mandatory redemption value at maturity.

PERCs generally offer a higher yield than common stocks. However, they can be called at any time, generally at a higher price than the cap price. When the PERC matures, it must be redeemed into either cash or underlying shares.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • Preferred equity redemption stock (PERC) — Preferred stock that converts automatically into equity at a stated date. A limit is placed on the value of the shares the investor receives. The New York Times Financial Glossary …   Financial and business terms

  • preferred equity redemption stock — ( PERC) preferred stock that converts automatically into equity at a stated date. A limit is placed on the value of the shares the investor receives. Bloomberg Financial Dictionary …   Financial and business terms

  • PERC — See: preferred equity redemption stock …   Financial and business terms

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