Dividend Enhanced Convertible Stock - DECS


DEFINITION of '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.

BREAKING DOWN 'Dividend Enhanced Convertible Stock - DECS'

Dividend enhanced convertible stocks provide the holder with the right to convert the security into the underlying company's common stock.

  1. Preferred Stock

    A class of ownership in a corporation that has a higher claim ...
  2. Debt Exchangeable for Common Stock ...

    A debt instrument that provides the holder with coupon payments ...
  3. Convertible Debenture

    A type of loan issued by a company that can be converted into ...
  4. Long (or Long Position)

    1. The buying of a security such as a stock, commodity or currency, ...
  5. Convertibles

    Securities, usually bonds or preferred shares, that can be converted ...
  6. Naked Put

    A put option whose writer does not have a short position in the ...
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