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Investing Glossary:
Separate Trading of Registered Interest and Principal Securities (STRIPS)
Copyright 2010,
Campbell R. Harvey. All Rights Reserved.
Do not reproduce without explicit permission.
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| Term: |
| Separate Trading of Registered Interest and Principal Securities (STRIPS)
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| Definition: |
| 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.
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