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Encyclopedia Britannica



COUPON (from Fr. cooper, to cut)

This article appears in Volume V07, Page 318 of the Encyclopedia Britannica.

Encyclopedia Britannica - Main :: COR-CRE
COUPON (from Fr. cooper, to cut) , a certificate entitling its owner to some payment, share or other benefit; more specifically,one of a
series
  of
interest
  certificates or dividend warrants attached to a bond running for a number of years. The word
coupon
  (a piece cut off) possesses an etymological meaning so comprehensive that, while on the Stock Exchange it is only used to denote such an
interest
  certificate or a certificate of stock of a
joint
 -stock
company
 , it may be as suitably, and elsewhere is perhaps more frequently, applied to tickets sold by tourist agencies and others. The coupons by means of which the interest on a bond or debenture is collected are generally printed at the side or foot of that document, to be cut off and presented for payment at the bank or agency named on them as they become due. The last portion, called a " talon," is a form of certificate, and entitles the holder, when all the coupons have been presented, to obtain a fresh
coupon
 
sheet
 . They pass by delivery, and are as a
rule
  exempt from stamp duty. Coupons for the payment of dividends are also attached to the share warrants to bearer issued by some
joint
 -stock companies. The coupons on the bonds of most of the
principal
  foreign loans are payable in London in
sterling
  as well as abroad.


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