Term of the Day
Income Deposit Security (IDS) is a hybrid security that consists of both the issuer's common shares and a debt instrument. The IDS provides regular payments to the holder from dividends of the common stock, and fixed income from the debt instrument. These types of securities are traded on stock exchanges, but it is not required that the underlying securities are listed on an exchange. After a certain period of time the underlying shares and bonds can be detached and traded separately.