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. Treasury Direct

    The online market where investors can purchase federal government ...
Related Articles
  1. Introduction To Convertible Preferred ...
    Bonds & Fixed Income

    Introduction To Convertible Preferred ...

  2. Convertible Bonds: An Introduction
    Bonds & Fixed Income

    Convertible Bonds: An Introduction

  3. 20 Investments You Should Know
    Options & Futures

    20 Investments You Should Know

  4. How Bitcoin Casinos Work
    Investing Basics

    How Bitcoin Casinos Work

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center