Dividend Enhanced Convertible Stock - DECS
Preferred stock that provides the holder with premium dividends in addition to an embedded short put option and a long call on the issuing company's stock.
Investopedia Commentary
Dividend enhanced convertible stocks provide the holder with the right to convert the security into the underlying company's common stock.
Related Links
Convertible Bonds: An Introduction
Introduction To Convertible Preferred Shares
How and Why Do Companies Pay Dividends?
See also: Convertible Debenture, Convertibles, Debt Exchangeable Common Stock - DECS, Long, Naked Put, Preferred Redeemable Increased Dividend Equity Security - PRIDES, Preferred Stock
Also spelled: DECS