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Finance Glossary

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Auction Market Preferred Stock - AMPS

Definition:

In AMPS, an auctioneer resets a preferred stock's dividend about every 7 weeks, after a dutch auction. (It has nothing to do with Tulips or cheese; a dutch auction happens when the lowest price needed to sell a whole bunch of securities becomes the price at which all the securities are sold.) AMPS are useful for large investors.