Dictionary of Finance and Investment Terms: dutch auction preferred stock
dutch auction preferred stock
type of adjustable-rate preferred stock whose dividend is determined every seven weeks in a dutch auction process by corporate bidders. Shares are bought and sold at face values ranging from $100,000 to $500,000 per share. Also known as auction rate preferred stock, Money Market Preferred Stock (Lehman Brothers Inc.), and by such proprietary acronyms as DARTS (Salomon Smith Barney Inc.).
