July 16, 2008
Greater flexibility for issuers of auction rate preferred stock: IRS Notice 2008-55
The auction rate securities market has been facing an unprecedented rate of auction failures due to liquidity concerns that have frozen the trading of auction rate preferred stock. Thus far, the trend shows no signs of reversing, which is adversely affecting the value of these securities. In order to alleviate the liquidity concerns, issuers have attempted to restructure their auction rate securities.
