Auction Market Preferred Stock (AMPS) refers to a type of preferred stock in which the dividend rate is reset at periodic intervals through a Dutch auction process, allowing for competitive bidding and market-based pricing.
An auction system where the price of an item is gradually lowered until it meets a responsive bid and is sold. U.S. Treasury bills are sold under this system, which contrasts with the two-sided or double-auction system used by major stock exchanges.
