A security possessing characteristics of both equity and debt issues. A company creates trust-preferred securities by creating a trust and issuing debt to the new entity. Because the interest paid to the trust is tax-deductible, the company may realize significant tax benefits.
Related information about trust-preferred security:
- Trust-preferred security - Wikipedia, the free encyclopedia
A trust-preferred security is a security possessing characteristics of both equity and debt issues. A company creates trust-preferred securities by creating a trust ...
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Dec 12, 2011 ... The Wall Street Journal's Gregory Zuckerman fields questions about trust preferred securities and closed-end stock and bond funds.
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- Trust Preferred Security - Financial Dictionary - The Free Dictionary
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