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fixed-rate capital securities

A security that operates like a combination of preferred stock and corporate bond. It normally has a par value set at $25. This type of financing has become fairly common among utility companies. The advantage for the company issuing these securities is that the periodic fixed rate distribution payments are fully tax deductable and can be deferred if needed. However, these payment deferrals can only occur if all stock dividends cease first.

Related information about fixed-rate capital securities:
  1. Fixed-Rate Capital Securities Definition | Investopedia
    A security issued by a corporation that has a $25 par value (although some are issued with a $1000 par value) and offers investors a combination of the features ...
     
  2. How Fixed-Rate Capital Securities Work
    The current market includes three basic types of fixed-rate capital securities, which differ primarily as a result of whether the parent company issues the securities ...
     
  3. Distinctive Features of Fixed-Rate Capital Securities
    These fixed-rate capital securities trade at a single, “flat” price, which includes— without separately identifying—the amount of income accrued since the last ...
     
  4. Fidelity Learning Center: What are Fixed Rate Capital Securities?
    What are fixed rate capital securities or frcs Learn about their benefits features risks and types from Fidelity.
     
  5. How to Invest in Fixed Rate Capital Securities | eHow.com
    How to Invest in Fixed Rate Capital Securities. Fixed rate capital securities offer the benefits of both stocks and bonds to the investor. These securities generally ...
     
  6. October 31, 2009: Fixed Rate Capital Securities: An Interesting ...
    Nov 1, 2009 ... In the early 1990s, a product called fixed rate capital securities was introduced to meet the needs of income-oriented investors and provide a ...
     
  7. Offbeat Offerings: Fixed-Rate Capital Securities | AAII: The American ...
    Offbeat Offerings: Fixed-Rate Capital Securities on AAII.com: Providing the education and guidance needed to build and manage investment wealth. Stocks, etfs ...
     
  8. Fixed-Rate Capital Security financial definition of Fixed-Rate Capital ...
    However, like preferred stock, the issuer may suspend payments on fixed-rate capital securities when it is having cash flow problems, though only if it also stops ...