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. |
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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. |
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