Auction rate preferred stock. ARPs and ARS (auction rate securities, which may be in the form of notes) have dividend or interest rate payments that are reset at frequent intervals through auctions, which typically occur every 7, 14, 28, or 35 days. The auctions also provide the primary source of liquidity to ARS investors who wish to sell their investment. Closed end funds, municipalities, and other types of issuers relied on ARPs and ARS for funding purposes. The auctions for ARPs failed during the financial crisis, rendering the securities illiquid.