Popular tips

What does IDR mean in investing?

What does IDR mean in investing?

International Depository Receipt
International Depository Receipt (IDR): An Overview An international depository receipt (IDR) is a negotiable certificate issued by a bank. It represents ownership of a number of shares of stock in a foreign company that the bank holds in trust.

What an IDR?

IDR is a textspeak acronym standing for I don’t remember.

What is an MLP finance?

A master limited partnership (MLP) is a company organized as a publicly traded partnership. MLPs combine a private partnership’s tax advantages with a stock’s liquidity. MLPs have two types of partners; general partners, who manage the MLP and oversee its operations, and limited partners, who are investors in the MLP.

What does IDR mean in a relationship?

Key Takeaways. Incentive distribution rights award a general partner a greater share of the profits of a partnership as revenue increases. It is meant to encourage the general partner to drive growth for limited partners. The system can be abused.

What does it mean to have an incentive distribution right?

Incentive Distribution Right means a Limited Partner Interest having the rights and obligations specified with respect to Incentive Distribution Rights in this Agreement (and no other rights otherwise available to or other obligations of a holder of a Partnership Interest).

How are incentive distribution rights ( IDR ) structured?

Some incentive distribution rights are structured in a way that unfairly benefits the general partner (GP). The general partner incentive can be substantial. That generally means that the limited partner has also done well`over a long period of time.

What are incentive distribution rights in a MLP?

Not only does the general partner receive a regular distribution from any common units that it holds, but in many cases the GP also holds incentive distribution rights (IDR) that entitle it to a higher proportion of the LP’s quarterly distribution.