An acronym for debt exchange for common stock. It is 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. 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 underlying common share.

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