STRIPS Definition

Bookmark and Share

STRIPS, in securities, is dividing a Treasury bond or mortgage-backed security into its principal and interest payments and selling the claims to these payments as new and separate securi­ties. The principal portion is called a principal only (PO) security, and the interest portion is called an interest only (IO) security

Learn new Accounting Terms

LONG-TERM LIABILITIES are liabilities of a business that are due in more than one year. An example of a long-term liability would be a mortgage payable.

SUSPENSE ACCOUNT, in accounting, is an account that is used on a temporary basis for receipts, disbursements, or discrepancies until such time as the analysis is complete and they can be properly classified.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.