A type of convertible bond issued by companies that pays a quarterly cash coupon and can also be exchanged for a certain number of shares or receive the cash equivalent at maturity. STRYPES were created and trademarked by Merrill Lynch, and are traded on major exchanges.    

|||STRYPES were created to help sell the stock of a company that pays a low dividend. The yield paid on the STRYPES makes up for the low dividend yield until the investor converts the STRYPES into common shares. Executives can also use STRYPES to gain cash periodically without significantly diluting a company's share value.The features of the STRYPES allows high-risk companies to access investment capital that might otherwise be unattainable.