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coupon

 
Dictionary: cou·pon   ('pŏn', kyū'-) pronunciation
n.
  1. A negotiable certificate attached to a bond that represents a sum of interest due.
    1. One of a set of detachable certificates that may be torn off and redeemed as needed: a food coupon.
    2. A detachable part, as of a ticket or advertisement, that entitles the bearer to certain benefits, such as a cash refund or gift.
    3. A certificate accompanying a product that may be redeemed for a cash discount.
    4. A printed form, as in an advertisement, to be used as an order blank or for requesting information or obtaining a discount on merchandise.
  2. A detachable slip calling for periodic payments, as for merchandise bought on an installment plan.

[French, from Old French colpon, piece cut off, from colper, to cut, from colp, blow. See coup.]

WORD HISTORY   A Roman might have had difficulty predicting what would become of the Latin word colaphus, which meant "a blow with the fist." In Old French, a language that developed from Latin, the Late Latin word colpus, derived from colaphus, became colp, or modern French coup, with the same sense. Coup has had a rich development in French, gaining numerous senses, participating in numerous phrases, such as coup d'état,) and giving rise to many derivatives, including couper, "to divide with a blow or stroke, to cut." Couper yielded the word coupon, "a portion that is cut off," which came to refer to a certificate that was detachable from a principal certificate. The detachable certificate could be exchanged for interest or dividend payments by the holder of the principal certificate. Coupon is first recorded in English in 1822 with this sense and then came to apply to forms or tickets, detachable or otherwise, that could be exchanged for various benefits or used to request information.


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The interest rate stated on a bond when it's issued. The coupon is typically paid semiannually.

This is also referred to as the "coupon rate" or "coupon percent rate".

Investopedia Says:
For example, a $1,000 bond with a coupon of 7% will pay $70 a year.

It is called a "coupon" because some bonds literally have coupons attached to them. Holders receive interest by stripping off the coupons and redeeming them. This is less common today as more records are kept electronically.

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Investing in bonds - What are they, and do they belong in your portfolio? Bond Basics Tutorial
Learn the rules every investor should know before buying into this "tax-free" investment. Avoid Tricky Tax Issues On Municipal Bonds
Learn the complex concepts and calculations for trading bonds including bond pricing, yield, term structure of interest rates and duration. Advanced Bond Concepts


Accounting Dictionary: Coupon Rate
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Interest rate on the face amount of a debt security. For instance, the annual interest to be paid on a $1000 bond with a nominal interest rate of 8% is $80. Typically, interest payments are made semiannually. The term derives from Bearer Bonds, once more common than now, which actually bore coupons to be detached and presented for payment as interest became due. Even with registered bonds the term survives and is distinguished from Yield, which relates the coupon rate to the market price of the bond.

Law Encyclopedia: Coupon
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This entry contains information applicable to United States law only.

A certificate evidencing the obligation to pay an installment of interest or a dividend that must be cut and presented to its issuer for payment when it is due.

Coupons are usually attached to a document, such as a promissory note, bond, share of stock, or a bearer instrument. A coupon is a written contract for the payment of a definite amount on a specified date according to the terms of the main document from which it must be separated for presentation for payment. Each coupon represents a separate promise by its issuer to pay its holder on the due date. Failure to do so will support a cause of action for breach of contract.

Word Tutor: coupon
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pronunciation

IN BRIEF: A ticket giving the owner certain rights.

pronunciation I had a coupon for $1 off the purchase of my favorite breakfast cereal.

 
Blogs: Related blogs on: coupon
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Wikipedia: Coupon
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In marketing a coupon is a ticket or document that can be exchanged for a financial discount or rebate when purchasing a product. Customarily, coupons are issued by manufacturers of consumer packaged goods or by retailers, to be used in retail stores as a part of sales promotions. They are often widely distributed through mail, magazines, newspapers, the Internet, and mobile devices such as cell phones.

Contents

Origin

In 1887, the Coca-Cola Company was incorporated with Asa Candler as one of the partners. He transformed Coca-Cola from an insignificant tonic into a profitable business by using innovative advertising techniques. The key to this growth was Candler's ingenious marketing including having the company's employees and sales representatives distribute complimentary coupons for Coca-Cola[1]. Coupons were mailed to potential customers and placed in magazines. The company gave soda fountains free syrup to cover the costs of the free drinks. It is estimated that between 1894 and 1913 one in nine Americans had received a free Coca-Cola, for a total of 8,500,000 free drinks. By 1895 Candler announced to shareholders that Coca-Cola was served in every state in the United States.

History

Coupons first saw widespread use in the United States in 1909 when C. W. Post conceived the idea to help sell breakfast cereals and other products. Today, more than 700 corporations offer coupons for discounts on products or services. Each year, coupons for consumer packaged goods generate nearly 3 billion dollars in transactions within the U.S. alone.[2]

There are many different types of online coupons such as discounts, free shipping, first-time customer coupons, and free giveaways.

Internet coupons

Online retailers often refer to Internet coupons as "coupon codes," "promotional codes," "promotion codes," "discount codes," "key codes," "promo codes," "surplus codes," "portable codes," "shopping codes," "voucher codes," or "source codes."[citation needed] Internet coupons typically provide for reduced cost or free shipping, a specific dollar or percentage discount, or some other offer to encourage consumers to purchase specific products or to purchase from specific retailers.

Taxation

Depending on the jurisdiction, coupons may or may not reduce the sales tax which must be paid by the consumer. This is often determined by who sponsors the coupon. If the coupon is issued by the retailer, the product was never offered at the original price and the coupon represents a reduction in the amount paid and the tax. If the coupon is issued by the manufacturer, the original price is still paid but some of the price is covered by the manufacturer instead of the consumer and the full price remains taxable. This is the case with the coupon-eligible converter boxes in the U.S., which compensate in part for the forced conversion to digital TV.

Pronunciation

The word is of French origin, pronounced [kuˈpɔ̃]. In Britain and Canada it is pronounced /ˈkuːpɒn/ KOO-pon. A common alternate American pronunciation is /ˈkjuːpɒn/ "CUE-pon".

Other uses

In finance, with respect to bonds, a coupon is the interest rate that the issuer pays to the bond holders.

In manufacturing and materials science, a coupon is a small piece of material used for testing or further processing, compare billet.

"Football pools" promoters in the United Kingdom also use this name when referring to the paper grids which gamblers fill in to bet on the results of football (soccer) fixtures. On these, players will mark a number of crosses (x) against individual game listings to indicate which they believe will end as a draw, or tied match. Rewards for correct forecasting can be of very high monetary value.

Love coupons and love coupon books are popular gifts on Valentine's Day and other anniversary days. They can be purchased in printed format, downloaded in digital format or be handmade.

References

  1. ^ Coca-Cola 120th Anniversary The Coca-Cola Company Time Line - 120 Years of Innovation
  2. ^ 2009 NCH Coupon Facts[1]

See also


Translations: Coupon
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Dansk (Danish)
n. - kupon, tipskupon, rationeringsmærke

Nederlands (Dutch)
(waarde-/rantsoen-/ distributiebon, (deelname) formulier (b.v. toto)

Français (French)
n. - bon, coupon, (Fin) coupon, grille de paris (football)

Deutsch (German)
n. - Gutschein, Coupon, Wettschein

Ελληνική (Greek)
n. - απόκομμα, δελτίο διανομής (κν. κουπόνι), κουπόνι δώρου, (οικον.) τοκομερίδιο, μερισματαπόδειξη

Italiano (Italian)
buono

Português (Portuguese)
n. - cupom (m)

Русский (Russian)
купон

Español (Spanish)
n. - cupón, vale

Svenska (Swedish)
n. - kupong, mottagardel (på postanvisning), räntekupong (börs.)

中文(简体)(Chinese (Simplified))
连张式的车票, 赠券, 联票, 减价优待券

中文(繁體)(Chinese (Traditional))
n. - 連張式的車票, 贈券, 聯票, 減價優待券

한국어 (Korean)
n. - 쿠폰, 회수권, 입후보 공천장

日本語 (Japanese)
n. - 切取り切符, クーポン, 優待券, 食品引換券, 申込券, 参加申込用紙, 利札, 党首の公認状

العربيه (Arabic)
‏(الاسم) قسيمه‏

עברית (Hebrew)
n. - ‮תלוש, טופס‬


 
 

 

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