Preferred stock whose dividend rate changes period... Add a comment

A type of preferred share whose dividend is not fixed but set periodically to reflect changes in interest rates. The rate is normally fixed at a slight premium to a benchmark rate, often as the result of a Dutch auction by investors. When adjusted more regularly it is fixed against a shorter term rate and is called a Money Market Preferred Stock.

Preferred stock whose dividend changes, usually quarterly, according to changes in the Treasury Bill rate or a similar benchmark. Issued with a collar.

Publicly traded issues that may be collateralized by mortgages and MBSs.