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ADJUSTABLE RATE PREFERRED STOCK Definition & Legal Meaning

Definition & Citations:

PREFERRED STOCK that pays investors a floating DIVIDEND that resets periodically (generally every quarter or every 49 days); the floating dividend is typically pegged to TREASURY BILL rates or some other recognized MONEY MARKET rate. Also known as MONEY MARKET PREFERRED STOCK, VARABLE RATE PREFERRED STOCK. See also DUTCH AUCTION PREFERRED STOCK.

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