Income Deposit Security - IDS

AAA

DEFINITION of 'Income Deposit Security - IDS'

A security that combines common stock and notes of the issuer to provide regular income payments to the holder of the security. The holder of the income deposit security receives dividends from the common stock, and fixed income from the debt instrument in the IDS.

INVESTOPEDIA EXPLAINS 'Income Deposit Security - IDS'

These types of securities are traded on stock exchanges and can be purchased by any type of investor. The companies that use this form of security are usually very stable and mature businesses. (This type of security is similar to the Canadian income trust, whose structure helps efficient distribution of a company's cash flow to investors.)

RELATED TERMS
  1. Income Participating Security - ...

    A security that comprises a common share and a high-yield bond ...
  2. Equity Unit Investment Trust

    A registered trust in which investors purchase units from a fixed ...
  3. Common Stock

    A security that represents ownership in a corporation. Holders ...
  4. Fixed-Income Security

    An investment that provides a return in the form of fixed periodic ...
  5. Note

    A financial security that generally has a longer term than a ...
  6. Real Estate Investment Trust - ...

    A security that sells like a stock on the major exchanges and ...
Related Articles
  1. Bonds & Fixed Income

    Introduction To Convertible Preferred ...

  2. Bonds & Fixed Income

    Asset Allocation In A Bond Portfolio

  3. Investing

    What's the difference between bills, ...

  4. Fundamental Analysis

    What metrics should I evaluate when ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center