Coupon

Slip attached to stocks and fixed-interest securities entitling the holder to dividend or interest payments.

The coupon sheet, which consists of individual coupons and a renewal certificate, is attached to the stock or bond certificate. The bondholder submits the individual coupons to a bank to receive dividend or interest payments.

It has become standard procedure for the bank handling the customer's portfolio to collect the coupons and transfer the dividend or interest payment to the respective account.

Coupons expire after four years.

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Coupon

Slip attached to stocks and fixed-interest securities entitling the holder to dividend or interest payments.

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