Pet Bonds - (Preferred Equity Traded Bonds) This "Family" of preferreds are actually bonds. They are unique in that they usually trade in $25 denominations rather than $1000 and are often listed on the New York Stock Exchange. They pay interest, not dividends and can pay a monthly, quarterly or semi-annual distribution. Pet Bonds are issued directly by a Corporation and in a few cases by a Government agency or Municipality. Unlike bonds, they trade without accrued interest because it is assumed to be in the purchase price. There are other bonds packaged into $25 preferred securities by a brokerage firm. Such bonds are similar to PET bonds, but differ in features and rights. See their description under "hybrid preferreds."