Cum Coupon

Filed Under »
Dictionary Says

Definition of 'Cum Coupon'

A bond status that means the buyer of the bond has the right to receive the current coupon payment on the bond. Cum-coupon bonds require the buyer to pay the seller the accrued interest on the bond, and the buyer is then entitled to the next coupon. In the United States, bonds are always traded cum-coupon although there are a few markets outside of the United States where they are traded ex-coupon.
Investopedia Says

Investopedia explains 'Cum Coupon'

If an investor is looking to buy a bond they should be aware of the status of the coupon. If the bond is cum-coupon, that investor can be rest assured that the upcoming coupon will be paid to him. If the bond has a gone ex-coupon, the investor will not be receiving the upcoming coupon payment.

Articles Of Interest

  1.

    The Advantages Of Bonds

    Bonds contribute an element of stability to almost any portfolio and offer a safe and conservative investment.

  2. How Bond Market Pricing Works

    Learn the basic rules that govern how bond prices are determined.

  3. Junk Bonds: Everything You Need To Know

    Don't be fooled by the name - junk bonds may be for you if you know how to analyze them.

  4. Bonds: They're Not Just For Seniors

    Fixed-income investments can be part of your portfolio at any age. Find out how.

  5. 5 Basic Things To Know About Bonds

    Learn these basic terms to breakdown this seemingly complex investment area.

  6. How To Compare Yields On Different Bonds

    Find out how to equalize and compare fixed-income investments with different yield conventions.

  7. Top 4 Strategies For Managing A Bond Portfolio

    Find out how these strategies work and how you can put them to work for you.

  8. Bond Call Features: Don't Get Caught Off Guard

    Learn why early redemption occurs and how to avoid potential losses.

  9. Common Bond-Buying Mistakes

    Avoid these errors made daily in bond portfolios everywhere.

  10. An Introduction To Emerging Market Bonds

    The rewards associated with this fixed-income asset are significant, but so are the risks.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  2. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  3. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  4. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.

  5. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.

  6. Chartalism

    A non-mainstream theory of money that emphasizes the impact of government policies and activities on the value of money.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=c30253ce2774143c45c376256a17b39e