Income Deposit Security - IDS

(Intrusion Detection System) Software that detects an attack on a network or computer system. A Network IDS (NIDS) is designed to support multiple hosts, whereas a Host IDS (HIDS) is set up to detect illegal actions within the host. Most IDS programs typically use signatures of known cracker attempts to signal an alert. Others look for deviations of the normal routine as indications of an attack. Intrusion detection is very tricky. Too much analysis can add excessive overhead and also trigger false alarms. Insufficient analysis can overlook a valid attack.

Catch It at the Source

The opposite of intrusion detection is "extrusion detection." Such software examines the outgoing data in the computer to determine if malware is originating in this computer. See protocol anomaly, traffic anomaly, IPS and attack.

Download Computer Desktop Encyclopedia to your iPhone/iTouch

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.)

Related Links:
An investor's fixed-income portfolio can easily beat the average bond fund. Learn how and why! Asset Allocation Within Fixed Income
These securities offer an answer for investors who want the profit potential of stocks but not the risk. Introduction To Convertible Preferred Shares

First introduced in 2004 and also called an income participating security (IPS) and an enhanced income security (EIS), an IDS consists of two securities "clipped" together. One is common stock, the other a fixed-rate debt instrument, and the two together produce a blended yield. IDSs are exchange-listed, but the underlying securities cannot be unclipped and traded until a period of time has expired, typically 45 to 90 days after the closing of the offering. Such offerings are priced to reflect a yield based on expected cash flow, which is distributed similarly to a Real Estate Investment Trust or other income trust. To ensure that equity and debt are kept separate and interest remains tax-deductible, at least 10% of the equity and 10% of the debt are placed with holders who do not own any IDSs. Companies with predictable cash flows, limited capital expenditure needs, and moderate growth potential are likely issuers.