Ex Coupon

AAA

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.

INVESTOPEDIA EXPLAINS 'Ex Coupon'

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.

RELATED TERMS
  1. Cum Coupon

    A bond status that means the buyer of the bond has the right ...
  2. Zero-Coupon Bond

    A debt security that doesn't pay interest (a coupon) but is traded ...
  3. Coupon

    The interest rate stated on a bond when it's issued. The coupon ...
  4. Coupon Bond

    A debt obligation with coupons attached that represent semiannual ...
  5. Bond

    A debt investment in which an investor loans money to an entity ...
  6. Current Coupon

    The to-be-announced (TBA) mortgage security of any issue for ...
Related Articles
  1. Are High-Yield Bonds Too Risky?
    Bonds & Fixed Income

    Are High-Yield Bonds Too Risky?

  2. The Advantages Of Bonds
    Investing

    The Advantages Of Bonds

  3. The Bond Market: A Look Back
    Mutual Funds & ETFs

    The Bond Market: A Look Back

  4. Why Bad Bonds Get Good Ratings
    Bonds & Fixed Income

    Why Bad Bonds Get Good Ratings

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center