Trust Preferred Securities - TruPS

AAA

DEFINITION of 'Trust Preferred Securities - TruPS'

A security similar to debentures and preferreds that is generally longer term, has early redemption features, makes quarterly fixed interest payments, and matures at face value.

INVESTOPEDIA EXPLAINS 'Trust Preferred Securities - TruPS'

TruPS have been created by companies for their favorable accounting treatments and flexibility. Specifically, these securities are taxed like debt obligations by the IRS while maintaining the appearance of equities in a company's accounting statements as according to GAAP procedures.

RELATED TERMS
  1. Unit Investment Trust - UIT

    An investment company that offers a fixed, unmanaged portfolio, ...
  2. Preferred Stock

    A class of ownership in a corporation that has a higher claim ...
  3. Trust

    A fiduciary relationship in which one party, known as a trustor, ...
  4. Equity Unit Investment Trust

    A registered trust in which investors purchase units from a fixed ...
  5. Convertible Debenture

    A type of loan issued by a company that can be converted into ...
  6. Face Value

    The nominal value or dollar value of a security stated by the ...
Related Articles
  1. Bond Basics Tutorial
    Retirement

    Bond Basics Tutorial

  2. Material Adverse Effect A Warning Sign ...
    Markets

    Material Adverse Effect A Warning Sign ...

  3. Footnotes: Early Warning Signs For Investors
    Retirement

    Footnotes: Early Warning Signs For Investors

  4. Are Equity-Indexed Annuities Right For ...
    Savings

    Are Equity-Indexed Annuities Right For ...

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center