Debt Exchangeable for Common Stock - DECS
A debt instrument that provides the holder with coupon payments in addition to an embedded short put option and a long call on the issuing company's stock.
Investopedia Commentary
DECS instruments provide the holder with the right to convert the security into the underlying company's common stock.
PRIDES securities are one example of debt exchangeable for common stock.
Related Links
Convertible Bonds: An Introduction
See also: Call, Convertible Debenture, Convertibles, Dividend Enhanced Convertible Stock - DECS, Long, Naked Put, Preferred Redeemable Increased Dividend Equity Security - PRIDES
Also spelled: DECS