释义 |
Quarterly Income Preferred Securities Quarterly Income Preferred SecuritiesPreferred stock representing a portion of ownership in a limited partnership. The limited partnership is a subsidiary of another company and exists only for the purpose of issuing the QUIPS. The proceeds from QUIPS are lent to the partnership's parent company. These securities thus combine aspects of stocks and bonds; they mature on a quarterly basis and usually have a par value of $25. Returns on MIPS come out of the partnership's pretax earnings, and, therefore, can result in tax advantages.Quarterly Income Preferred Securities (QUIPS) Preferred stock that represents interest in a limited partnership formed for the sole purpose of lending proceeds of the equity issue to the parent company. Dividends to holders of QUIPS are paid from tax-deductible interest paid by the parent corporation. |