DEFINITION of 'Income Deposit Security - IDS'

A security that combines common stock and notes of the issuer to provide regular income payments to the holder of the security. The holder of the income deposit security receives dividends from the common stock, and fixed income from the debt instrument in the IDS.

BREAKING DOWN 'Income Deposit Security - IDS'

These types of securities are traded on stock exchanges and can be purchased by any type of investor. The companies that use this form of security are usually very stable and mature businesses. (This type of security is similar to the Canadian income trust, whose structure helps efficient distribution of a company's cash flow to investors.)

  1. Exchangeable Security

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  3. Income Participating Security - ...

    A security that comprises a common share and a high-yield bond ...
  4. Debt Exchangeable for Common Stock ...

    A debt instrument that provides the holder with coupon payments ...
  5. Canadian Income Trust

    A type of corporate structure as designated by the Canada Revenue ...
  6. Registered Holder

    Shareholders who hold their shares directly with a company.
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