http://www.investopedia.com/terms/i/incomedepositsecurity.asp
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. 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.) *** Given the above definition, it is my 'forecast' the Income Deposit Securities WILL INCREASE in number in time. Why? Because of the Baby Boomer Generation retiring and wanting INCOME!! The above definition likens these to the Canadian Trusts which have recently tanked because of the change in tax laws there. Heck..my guess is that you will have a dual demand from both American and Canadian retirees. Per the above, the companies that issue these are 'stable and mature'...and their purpose is to generate income. It has been recently documented that divvy stocks are outperforming most everything else. Given this, I think it important that QP provide more accurate info and more info regarding dividends...such as dividend growth (if they don't already have this..this is a suggestion). There needs to be some improvement in classification too. In my opinion. There appears to be many closed end funds, for example, that are classified as stocks. These should be included in the closed end fund group. Why? Because these ACT DIFFERENTLY THAN DO STOCKS...BECAUSE THEY ARE PORTFOLIOS OF STOCKS. I would guess, for example, that they would have less volatility. Also, they often trade at a premium or discount. If I want to look at all closed end funds that trade at a discount, HOW IN THE WORLD DO I KNOW WHERE THEY ARE IF THEY ARE BURIED IN WITH THE STOCKS???? I know i can look at those that are correctly classified as CEFs..but what about the others? Some are obvious. I've seen some Eaton Vance funds in the stock section. Why?
