A callable note that pays interest to the holder, and upon maturity is exchanged for shares in the underlying company. These investment products are issued and underwritten by Morgan Stanley and provide investors with both interest payments and exposure to the stock market.



Taobiz explains Stock Participation Accreting Redemption Quarterly-Pay Securities - SPARQS
The notes are issued at a set price and interest is paid quarterly. The issuer can call the notes after a specified period of time. When the notes are called, the holders are paid out a specified amount that includes all of the future interest payments; this is done usually when the price of the stock has risen rapidly. If, on the other hand, the notes reach maturity, the holders receive a specified amount of shares in the underlying company.