What is a QUIPS
One answer from deanwitter.com
"Preferred Securities
Morgan Stanley Dean Witter maintains a wide range of preferred
securities in its inventory, including traditional or "perpetual" preferred stocks as well as "synthetic" preferreds such as QUIBS, QUICS, QUIDS, QUIPS, MIDS, MIPS and TOPrS
In general, preferreds offer:
- a predictable income stream.
- yields that are typically higher than common stocks.
- a variety of credit quality levels.
- liquidity at market prices through the OTC and major exchanges.
- dividend payment seniority over common stocks.
Traditional Preferreds:
- are senior equity securities.
- offer fixed dividends — paid quarterly.
- are generally "perpetual" with no set maturity.
- provide domestic corporations with a tax advantage ("DRD").
Synthetic Preferreds
QUIBS, QUICS, QUIDS, QUIPS, MIDS, MIPS and TOPrS):
- are debt securities.
- offer fixed dividends — paid quarterly or monthly.
- have a set maturity — generally 20 to 50 years.
Both Types of Preferred Securities:
- are typically callable prior to maturity.
- provide a call protection period — generally 5 to 10 years.
- are offered in low minimums — typically $25 par value. "
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