Dutch Auction Preferred Stock

Type of adjustable-rate Preferred Stock whose dividend is determined every seven weeks in a Dutch Auction process by corporate bidders. Shares are bought and sold at Face Values ranging from $100,000 to $500,000 per share. Also known as auction rate preferred stock, Money Market Preferred Stock (Lehman Brothers Inc.), and by such proprietary acronyms as DARTS (Salomon Smith Barney Inc.). See also Amps; Aps.