stripping


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Stripping

The act or practice of removing the coupons from a bond, especially a U.S. Treasury security, and trading the bond separately such that it pays no interest. Stripped bonds are sold at a significant discount from par and mature at par. They fluctuate in price, sometimes dramatically, because changes in interest rates make them more or less desirable. They can be invested in IRAs and other pension accounts; however, unlike other Treasury securities, they are subject to federal taxes. Generally speaking, stripped securities are quoted according to their yields, rather than their prices. In 1985, the U.S. Treasury began issuing its own stripped securities, called STRIPS, which replaced other vehicles, such as CATS and TIGRS, that had been issued by the Treasury and stripped by another party.

stripping

References in periodicals archive ?
Toshiba, Shibaura and Chlorine have already developed a single-wafer resist stripping system that will be integrated into the resist stripping process at Toshiba's Yokkaichi plant in April Shibaura and Chlorine plan to sell the current resist stripping system as well as the new electrolyzed sulfuric system.
advocated court stripping as a means to protect state-sponsored Ten Commandments displays, such as the one erected by former Alabama Supreme Court Chief Justice Roy Moore in Montgomery.
obtaining the straightest draw possible/stripping method (hand, hoist and trunion, rotary table or rollover)--The stripping of the mold must be straight, or deep pockets and small areas will break.
Stripping transactions effected through a transferred basis transaction.
subsidiaries wholly owned by a foreign corporation would not appear to be members of an affiliated group, and thus require the earnings stripping rules to be applied on a separate company basis.