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Preferred Equity Redemption Stock - PERC

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Dictionary Says

Definition of 'Preferred Equity Redemption Stock - PERC'

Preferred stock with special provisions limiting the value of its convertible shares and the mandatory redemption value at maturity.
Investopedia Says

Investopedia explains 'Preferred Equity Redemption Stock - PERC'

PERCs generally offer a higher yield than common stocks. However, they can be called at any time, generally at a higher price than the cap price. When the PERC matures, it must be redeemed into either cash or underlying shares.

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