Monthly Income Preferred Securities - MIPS
- Monthly Income Preferred Securities - MIPS
- Shares that are an interest in a limited partnership existing solely for the purpose of issuing preferred securities and lending the proceeds of the sales to its parent company. MIPS usually have a $25 par value, NYSE listing and cumulative monthly distributions.
MIPS are 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, generating a sizable tax break for corporations.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
Monthly income preferred stock — This article is about the financial instrument. For other uses, see MIPS. Monthly income preferred stock or MIPS is a hybrid security created by Eli Jacobson[1], a Sullivan Cromwell tax partner, and introduced to the market by Goldman Sachs in… … Wikipedia
List of finance topics — Topics in finance include:Fundamental financial concepts* Finance an overview ** Arbitrage ** Capital (economics) ** Capital asset pricing model ** Cash flow ** Cash flow matching ** Debt *** Default *** Consumer debt *** Debt consolidation ***… … Wikipedia