favored stock that will pay a dividend in accordance with interest rates generally speaking instead of a fixed dividend. The changes in the dividend tend to be dependant on a pre-set formula.
PREFERRED STOCK that will pay investors a floating DIVIDEND that resets sporadically (generally every one-fourth or every 49 days); the floating dividend is usually pegged to TREASURY BILL rates or other acknowledged MONEY MARKET price. Also called MONEY MARKETPLACE PREFERRED STOCK, VARABLE RATE FAVORED STOCK. See additionally DUTCH AUCTION FAVORED STOCK.