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.
Investopedia Commentary
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.
See also: Hybrid Security, MIPS, Preferred Stock
Also spelled: QUIPS