coupon clipping

Coupon Clipping

The practice of finding discounts on consumer goods such as groceries. One presents pieces of paper representing these discounts (called coupons) to receive the discount. The coupons are cut out of ("clipped" from) a periodical such as a newspaper or magazine. These coupons should not be confused with the coupons on bonds.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

coupon clipping

The removal of interest coupons attached to a bearer bond in order that they might be taken to a bank or sent to a paying agent for redemption. Coupon clipping is necessary because owners of bearer bonds do not automatically receive interest checks in the mail every six months.

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.