Trust Preferred Securities - TruPS


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.

BREAKING DOWN '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.

  1. Preferred Stock

    A class of ownership in a corporation that has a higher claim ...
  2. Convertible Debenture

    A type of loan issued by a company that can be converted into ...
  3. Debenture

    A type of debt instrument that is not secured by physical assets ...
  4. Equity Unit Investment Trust

    A registered trust in which investors purchase units from a fixed ...
  5. Face Value

    The nominal value or dollar value of a security stated by the ...
  6. Generally Accepted Accounting Principles ...

    The common set of accounting principles, standards and procedures ...
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