adjustable rate preferred (ARP) stock
Definition
Cumulative preferred stock (preference shares) with floating dividend rate that is reset and paid quarterly based on a benchmark such as three month US Treasury Bill. ARPs have no maturity date but may be called at the issuer's option. They also have a minimum and maximum dividend allowable rate.
adjustable rate preferred (ARP) stock is in the Accounting & Auditing, Investing and Securities & Futures Trading subjects.
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