How Do You Spell EX COUPON?

Pronunciation: [ˈɛks kˈuːpɒn] (IPA)

The term "EX COUPON" refers to a security that is sold without the right to receive the next interest payment. The IPA phonetic transcription for "EX COUPON" is /ˌɛks kuːˈpɒn/. In this transcription, the "ex" is pronounced with the short e sound and the stress is on the first syllable. The "coupon" is pronounced with a long u sound, followed by the stress on the second syllable. It is important to spell the word correctly in financial transactions to avoid confusion and errors in payment processing.

EX COUPON Meaning and Definition

1. The term "ex coupon" is primarily used within the context of financial markets, specifically in relation to bonds and fixed-income securities. The term refers to a period during which a bond no longer carries the right to receive the next scheduled interest payment or coupon. In simpler terms, it signifies that the bondholder will not be eligible to receive the upcoming coupon payment.

   When a bond is issued, it typically comes with a fixed interest rate that is paid to the bondholder periodically, often annually or semi-annually, as per the terms of the bond agreement. However, when the bond enters an ex coupon period, it means that the issuer has set a specific date, often several weeks before the coupon payment is due, as the cut-off date determining eligibility for that particular payment. Any bond bought or sold after the ex coupon date does not entitle the new owner to receive the upcoming coupon payment, as they have technically missed the cut-off.

   The term "ex coupon" is an abbreviation of the Latin phrase "without coupon." This definition is crucial for bond market participants, as it enables them to determine the timing of purchases and sales in order to receive or forgo coupon payments. Overall, ex coupon is a key concept in bond trading, as it specifies the period during which bondholders will not receive the next scheduled interest payment.

Common Misspellings for EX COUPON

• ex0coupon
• excoupon
• EX C_UPON
• EX COUP_N

Etymology of EX COUPON

The word "ex coupon" is derived from Latin and French roots.

The term "ex" comes from the Latin word "ex", meaning "out of" or "from". It indicates that something is excluded or separated from something else.

The word "coupon" has its origins in the French word "couper", meaning "to cut". In the context of financial transactions, a coupon originally referred to a detachable certificate that was physically cut from a bond or a security to be presented for payment or for some other financial arrangement.

When combined, "ex coupon" indicates that a financial instrument, such as a bond or a stock, is being traded or settled without the right to receive the next scheduled interest or dividend payment. In essence, it means that the instrument is being traded or settled without the attached coupon or entitlement to any future payments.