This is a list of the Income Deposit Securities QuantumOnline tracks. An IDS, sometimes called an Income Participating Security, is a stapled unit: one share of common stock and a subordinated note, sold and traded together as a single security.
The structure was designed to deliver a high cash yield with better tax treatment than a pure dividend, by splitting the payment into a dividend component and a deductible interest component.
| Symbol / CUSIP | Security Description | Exchange | IPO Date | Call Date | Prospectus |
|---|---|---|---|---|---|
| CVP 92873P204 | Centerplate Inc., Income Deposit Securities | AMEX | 12/5/2003 | n.a. | Prospectus |
The note portion pays interest, which the issuing company deducts against its taxable income — a deduction it could not take on a dividend. The equity portion pays a dividend and carries whatever growth the business produces.
For the holder, part of the distribution is interest taxed at ordinary rates and part is a dividend. The two components can generally be separated and traded individually after a holding period, though in practice most trading is in the stapled unit.
IDSs were introduced in the early 2000s and never achieved wide adoption in the U.S. market. The list is short, the issues are small, and liquidity is generally thin, so limit orders are advisable.
Because the structure suits businesses with stable, predictable cash flows and limited growth reinvestment needs, issuers have tended to cluster in mature niche industries.
QuantumOnline has tracked exchange-traded income securities since 1997. Every security in this list is researched and maintained by hand from the issuer's prospectus and SEC filings, not scraped from a vendor feed. Where a figure is unavailable we show "n.a." rather than guessing.
Information is believed to be accurate but is not guaranteed, and nothing here is a recommendation to buy or sell. Always confirm terms against the issuer's prospectus before investing.