coupon

Dictionary of American Words And Phrases by John Russell Bartlett.

A financial term, which, together with the practice, is borrowed from France. In the United States, the certificates of State stocks drawing interest are accompanied by coupons, which are small tickets attached to the certificates. At each term when the interest falls due, one of these coupons is cut off (whence the name); and this being presented to the State treasurer, or to a bank designated by him, entitles the holder to receive the interest. The coupons attached to the bonds of some of the Western States have not been cut off for several years.

Related Words