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FPCPS: Introduction to an innovative financial instrument
Author(s) -
Schneider Douglas K.,
Mason J. David
Publication year - 1999
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/1097-0053(199924)10:2<81::aid-jcaf10>3.0.co;2-w
Subject(s) - financial instrument , convertible , variety (cybernetics) , business , accounting , finance , economics , engineering , computer science , structural engineering , artificial intelligence
The controversy over FASB's derivatives standard shows that companies are eager to use a variety of new financial instruments. The authors explain the structure of —and reporting for—another innovative financial instrument, future priced convertible preferred stock (FPCPS). For some firms, it provides a means of raising capital not accorded by more conventional financial instruments. But there are risks that must be controlled. ©1999 John Wiley & Sons, Inc.