Income Deposit Security

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Income Deposit Security

A security that combines common stock and bonds. That is, when one purchases an IDS, one has effectively purchased a common share and part of a bond issue. This combines the stability of coupon payments with the potential for high returns of common stock. After a certain period of time, the investor may split an IDS into its component parts and sell them separately. An income deposit security is also called an income participating security and an enhanced income security.
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Holders of the Income Deposit Securities continue to receive quarterly interest payments on the USD7.50 subordinated note that amounts to USD0.975 per unit per year or USD0.24375 per unit per quarter and the second quarter interest will be paid on 2 July 2012 to all shareholders of record at the close of business on 15 June 2012.