An equity security that is designed to mimic the structure of a specific form of preferred equity redemption cumulative stock (PERCS) which is the mandatory conversion preferred stock. Like an ordinary PERCS, it is a mandatory convertible security with a price cap on the underlying stock. If offers no downside protection, whilst its upside potential is limited to the capped price appreciation. The mandatory conversion feature means the holder will receive a share on a one-for-one basis. Furthermore, it can be viewed as the combination of a long stock and a short call.

Examples of this security include the yield enhancement security (YES), MCPDPS, DECS, ACES, Exch DECS, PRIDES, etc.