Monthly Income Preferred Securities - MIPS


DEFINITION of 'Monthly Income Preferred Securities - MIPS'

Shares that are an interest in a limited partnership existing solely for the purpose of issuing preferred securities and lending the proceeds of the sales to its parent company. MIPS usually have a $25 par value, NYSE listing and cumulative monthly distributions.

BREAKING DOWN 'Monthly Income Preferred Securities - MIPS'

MIPS are hybrid securities, combining features of preferred stock and corporate bonds. Hybrids can pay a higher rate of return than preferred stock because dividends are paid with pretax dollars, generating a sizable tax break for corporations.

  1. Preferred Stock

    A class of ownership in a corporation that has a higher claim ...
  2. Hybrid Security

    A security that combines two or more different financial instruments. ...
  3. Quarterly Income Preferred Securities ...

    Shares that are an interest in a limited partnership that exists ...
  4. Security

    A financial instrument that represents an ownership position ...
  5. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating ...
  6. Weighted Average Cost Of Capital ...

    Weighted average cost of capital (WACC) is a calculation of a ...
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  1. What is the difference between preferred stock and common stock?

    Preferred and common stocks are different in two key aspects. First, preferred stockholders have a greater claim to a company's ... Read Full Answer >>
  2. How are joint ventures regulated in the United States?

    Joint ventures are a very specific type of business arrangement. They can be organized in several different legal structures, ... Read Full Answer >>
  3. What types of capital are not considered share capital?

    The money a business uses to fund operations or growth is called capital, and there are a number of capital sources available. ... Read Full Answer >>
  4. What is the difference between issued share capital and subscribed share capital?

    The difference between subscribed share capital and issued share capital is the former relates to the amount of stock for ... Read Full Answer >>
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    If an investor owns one ordinary share of a company, that investor is entitled to one vote on all of that company's major ... Read Full Answer >>
  6. Can I buy insurance to reduce unlimited liability in a partnership?

    Partnership insurance is actually quite common. Most of the time, partners buy insurance to safeguard against the possibility ... Read Full Answer >>

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