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. Investopedia Says:
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.) Related Terms:
Common Stock
Dividend
Equity Unit Investment Trust
Fixed-Income Security
Income Trust
Note
Real Estate Investment Trust - REIT
Royalty Income Trust
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