Quarterly Income Preferred Securities - QUIPS

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Hybrid Security

    A security that combines two or more different financial instruments. ...
  2. Preferred Stock

    A class of ownership in a corporation that has a higher claim ...
  3. Monthly Income Preferred Securities ...

    Shares that are an interest in a limited partnership existing ...
  4. ISP (Internet Service Provider)

    A company that provides consumers, businesses, and other Internet ...
  5. TIMP (acronym)

    'TIMP' is an acronym that stands for 'Turkey, Indonesia, ...
  6. Return On Equity - ROE

    The amount of net income returned as a percentage of shareholders ...
Related Articles
  1. Corporate Bonds: An Introduction To ...
    Bonds & Fixed Income

    Corporate Bonds: An Introduction To ...

  2. Introduction To Convertible Preferred ...
    Bonds & Fixed Income

    Introduction To Convertible Preferred ...

  3. How Warren Buffett made Berkshire Hathaway ...
    Stock Analysis

    How Warren Buffett made Berkshire Hathaway ...

  4. Digging Into The Dividend Discount Model
    Markets

    Digging Into The Dividend Discount Model

comments powered by Disqus
Hot Definitions
  1. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an ...
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  5. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center