DEFINITION of '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.
BREAKING DOWN 'Debt Exchangeable for Common Stock - DECS'
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.