Separate Trading of Registered Interest and Principal Securities

Separate Trading of Registered Interest and Principal Securities
( STRIPS )
long-term notes and bonds divided into principal and interest-paying components, which may be transferred and sold in amounts as small as $1000. STRIPS are sold at auction at a minimum par amount, varying for each issue. The amount is an arithmetic function of the issue's interest rate. Bloomberg Financial Dictionary

Financial and business terms. 2012.

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