Ex Coupon

DEFINITION of 'Ex Coupon'

A bond or preferred stock that does not include the interest payment or dividend when purchased or sold. A bond that is ex coupon is sold or bought with the knowledge that the investor will not receive the next coupon payment from the bond. The lack of interest payments should be taken into account when purchasing the bond and discounted accordingly.


The ex coupon date is the first day the bond starts trading without the coupon attached to it. If the asset is purchased on or after the ex coupon date, no coupon is included with the asset, so the investor must buy or sell the asset before the ex coupon date in order to get it with a coupon linked to it.