Found: 3 Items
Zero Coupon Stock
Loan stocks with a fixed life, from which the lender receives no annual interest. Instead, the stock is issued by a company at a price considerably lower than the nominal value.
Zero Dividend Preference Share
A share with no right to receive a dividend. It is entitled instead to a fixed sum on repayment. This figure is usually expressed as an annual percentage and accrues annually. Important Information
Fixed-income securities that are sold at a deep discount. They pay principal and interest upon maturity, not periodically like coupon bonds. The difference between the amount paid for the bonds and the amount received at maturity equals the return on the investment. The market value of zero-coupon bonds fluctuate more due to changes in market conditions than regular coupon bonds and therefore may not be suitable for all investors. Interest that accrues on zero-coupon bonds may be subject to income taxes annually, even though no payments are actually received in the client's account.