Quarterly Income Preferred Securities, or QUIPS, are a type of investment security that allows companies to raise money while receiving a tax benefit, and investors to receive dividends. QUIPS are issued by companies in need of capital, and are sold to investors who want to earn income from their investments.The income from QUIPS is paid out quarterly, and the payments are taxed as ordinary income. Because of this tax treatment, QUIPS offer a higher yield than other types of securities with similar risks.QUIPS can be an attractive investment for both companies and investors because they offer a way to receive regular income payments while deferring taxes on those payments. For companies issuing QUIPS, the tax benefits can help offset the cost of raising capital.And for investors holding QUIPS, the regular dividend payments provide a source of stable income. However, it is important to remember that Quarterly Income Preferred Securities represent a relatively complicated structure , so it is important to consult with financial advisor before investing in them.
