A convertible security which constitutes a listed structured product issued by a company on its stock and embedded with a short put and long call combined with an interest coupon. This debt instrument is issued by the company, itself, or a block holder of the underlying common share. Ultimately, the debt is convertible, tax-free, into common shares. Debt exchange for common stock (DECS) securities are often issued to facilitate deleveraging of a company’s balance sheet. It uses a convertible preferred structure that allows an investor to attain high income and participate in a possible appreciation of the common share.

It is not be confused with dividend enhanced convertible stock (also abbreviated as DECS).

Debt exchange for common stock is also known as debt exchange for common stock.