Adjustable rate preferred (ARP) stock,
Definition of Adjustable rate preferred (ARP) stock:
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 issuers option. They also have a minimum and maximum dividend allowable rate.
Meaning of Adjustable rate preferred (ARP) stock & Adjustable rate preferred (ARP) stock Definition
