Stock Participation Accreting Redemption Quarterly-Pay Securities - SPARQS

AAA

DEFINITION of 'Stock Participation Accreting Redemption Quarterly-Pay Securities - SPARQS'

A callable note that pays interest to the holder, and upon maturity is exchanged for shares in the underlying company. These investment products are issued and underwritten by Morgan Stanley and provide investors with both interest payments and exposure to the stock market.

INVESTOPEDIA EXPLAINS 'Stock Participation Accreting Redemption Quarterly-Pay Securities - SPARQS'

The notes are issued at a set price and interest is paid quarterly. The issuer can call the notes after a specified period of time. When the notes are called, the holders are paid out a specified amount that includes all of the future interest payments; this is done usually when the price of the stock has risen rapidly. If, on the other hand, the notes reach maturity, the holders receive a specified amount of shares in the underlying company.

RELATED TERMS
  1. Conversion

    The exchange of a convertible type of asset into another type ...
  2. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis ...
  3. Note

    A financial security that generally has a longer term than a ...
  4. Call Premium

    1. The dollar amount over the par value of a callable fixed-income ...
  5. Callable Bond

    A bond that can be redeemed by the issuer prior to its maturity. ...
  6. Real Estate

    Land plus anything on it, including buildings and natural resources.
Related Articles
  1. Bonds & Fixed Income

    Introduction To Convertible Preferred Shares

    These securities offer an answer for investors who want the profit potential of stocks but not the risk.
  2. Bonds & Fixed Income

    Convertible Bonds: An Introduction

    Find out about the nuts and bolts, pros and cons of investing in bonds.
  3. Options & Futures

    20 Investments You Should Know

    To take advantage of all your investing options, you need to know what your choices are. Here we tell you about the diverse features and advantages of 20 different financial instruments.
  4. Mutual Funds & ETFs

    The ABCs of Mortgage-Backed Securities ETFs

    ETFs focused on mortgage-backed securities, or MBS, offer an opportunity to further diversify the fixed-income portion of your portfolio.
  5. Professionals

    Are Alternative Mutual Funds, ETFs Right for You?

    Alternative mutual fund and ETFs are gaining popularity but are they a good idea for your regular Joe investor?
  6. Investing

    Is the Best Plan for Pot Investing 'Wait-and-see?'

    Legalized marijuana is an emerging industry and those interested in investing in it should proceed with caution.
  7. Economics

    What Would Happen If Interest Rates Rise?

    This time around, while U.S. long-term yields have rebounded from their January lows, rates have generally been lower than where they ended 2014.
  8. Investing

    Strategies To Position Your Bond Portfolio

    Fixed income investors may not be able to see them all right now, but important trends are stirring on the investment horizon.
  9. Savings

    How To Make Money With Airbnb: Risks & Rewards

    Airbnb lets you turn your home or spare room into extra cash. Here's how to make money and protect yourself from the risks.
  10. Mutual Funds & ETFs

    Tired Of Mutual Funds? Try This Alternative

    Mirrored investments services are a beneficial alternative to traditional mutual funds. Discover how they work and how they can be used to your advantage.

You May Also Like

Hot Definitions
  1. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  2. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  3. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  4. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  5. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  6. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
Trading Center