Quarterly Income Preferred Securities - QUIPS


DEFINITION of 'Quarterly Income Preferred Securities - QUIPS'

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

BREAKING DOWN 'Quarterly Income Preferred Securities - QUIPS'

QUIPS are an example of 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 and, therefore, they generate 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. Monthly Income Preferred Securities ...

    Shares that are an interest in a limited partnership existing ...
  4. Ex Works (EXW)

    An international trade term requiring the seller to make goods ...
  5. Employee Stock Option - ESO

    A stock option granted to specified employees of a company. ESOs ...
  6. Earnings Before Interest & Tax ...

    An indicator of a company's profitability, calculated as revenue ...
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  1. Do mutual funds pay dividends?

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  2. How often do mutual funds pay capital gains?

    The frequency with which mutual funds pay capital gains varies. However, funds that generate a profit within a given year ... Read Full Answer >>
  3. Can dividends be paid out monthly?

    Though it is more common for dividends to be paid quarterly or annually, some stocks do pay monthly dividends. Dividends: ... Read Full Answer >>
  4. Are dividends considered an asset?

    Whether dividends paid on stock are considered an asset depends on which role you play in the investment: the issuing company ... Read Full Answer >>
  5. Are dividends considered passive or ordinary income?

    Despite the fact that earning dividends requires no active participation on the part of the shareholder, they do not meet ... Read Full Answer >>
  6. Is dividend income taxable?

    Dividend income is taxable but it is taxed in different ways depending on whether the dividends are qualified or nonqualified. ... Read Full Answer >>

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