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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Separate Trading of Registered Interest and Principal of Securities

Also called STRIPS, a Treasury security whose coupons have been separated from the principal. STRIPS therefore pay no interest. They are sold at a significant discount from par and mature at par. STRIPS fluctuate in price, sometimes dramatically, because changes in interest rates made them more or less desirable. STRIPS could be invested IRAs and other pension accounts; however, unlike other Treasury securities, they are subject to federal taxes. STRIPS are quoted according to their yields rather than their prices. They began to be issued in 1985, rendering obsolete similar securities, such as CATS, which behaved similarly. See also: zero-coupon bond.


A bearish investment strategy in which an investor holds two puts and one call on the same underlying asset with the same expiration date and strike price. An investor uses a strip when he/she believes that the price of the underlying will decrease substantially. If it does, the investor stands to make a substantial profit by exercising the puts. On the other hand, if the underlying increases in price, the investor will not suffer a substantial loss because the strike price of the call protects him/her. See also: Call backspread ratio, Strap.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


STRIPS, an acronym for separate trading of registered interest and principal of securities, are special issues of US Treasury zero-coupon bonds. They're created and sold by brokerage firms, not by the government.

The bonds are prestripped, which means that the issue is separated into the principal and a series of individual interest payments, and each of those parts is offered separately as a zero-coupon security.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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In contrast, test strips are not abundantly available in countries with limited healthcare resources which might restrain the growth of the global test strip market.
Use a combination of simple piecing and strip piecing to take a short cut to a quilt full of wonder and beauty.
2 Layer the strip and patches right sides together, aligning folds.
Sew a blue 1 1/2" strip, a yellow 1" strip and a blue 1 3/4" strip together to make a band A.
Alternatively, piece together two or more strips to make up any preferred width - cut the strips so that the joins don't all fall in the same place.
This study compared three manufacturers' urine reagent strips and instruments:
When I strip, I apply slight tension to the line by squeezing together my index and next finger.
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The new strips are compatible with all FreeStyle blood glucose monitoring systems, eliminating the need to switch meters.
Size of the Almen strips (strip-A specified in the SAE J4542) is 76 mm long, 19 mm wide and 1.4 mm thick.
The top side edge of the second sheet strip has an elastic member extending in the longitudinal direction and bonded in a stretched state.