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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