ANSWERS: 1
  • "Income Deposit Security is 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.) An Income Trust is an investment trust that holds assets which are income producing. The income is passed on to the unit holders. Investopedia Says... Some of the most popular income trusts are Real Estate Investment Trusts (REITs) and Natural Resource Trusts. The main attraction of income trusts is their ability to generate constant cash flows for investors. " [source http://www.investopedia.com/terms/i/]

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