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. Cumulative Dividend

    A sum that publicly traded companies must remit to preferred ...
  2. Noncumulative

    A type of preferred stock that does not pay the holder any unpaid ...
  3. Preferred Stock ETF

    An exchange-traded fund that either tracks a preferred stock ...
  4. Convertible Preferred Stock

    Preferred stock that includes an option for the holder to convert ...
  5. Convertible Adjustable Preferred ...

    A preferred, floating rate issue, whose interest rate is tied ...
  6. Participating Preferred Stock

    A type of preferred stock that gives the holder the right to ...
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  1. What are some examples of preferred stock, and why do companies issue it?

    Understand the difference between preferred stock and common stock, and learn the primary reasons why companies issue preferred ... Read Answer >>
  2. What is the difference between preference and ordinary shares?

    Preferred shareholders have a higher priority claim to the assets of a corporation in case of insolvency than common shareholders. Read Answer >>
  3. Why would a company issue preference shares instead of common shares?

    Learn about some reasons that corporations might issue preference shares, and why investors might value them more than common ... Read Answer >>
  4. What is the difference between preferred stock and common stock?

    Preferred stockholders have a greater claim to a company's assets and earnings than common stockholders, but may not have ... Read Answer >>
  5. Does issuing preferred shares offer a tax advantage for corporations?

    There is no direct tax advantage to the issuing of preferred shares when compared to other forms of financing such as common ... Read Answer >>
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