GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Special Trading of Registered Interest and Principle of Securities
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Separate Trading of Regulating Interest and Principle of Securities
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Separate Trading of Registered Interest and Principle of Securities
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Separate Trading of Regulating Interest and Principle of Securities
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Detailed explanation-1: -STRIPS is an acronym for Separate Trading of Registered Interest and Principal of Securities. A U.S. Treasury bond is stripped by the commercial book-entry system in a process that effectively makes the interest payment and principal payment separate entities. The result is known as a strip bond or a zero-coupon bond.
Detailed explanation-2: -A bear trap is a technical pattern that occurs when the price action of a stock, index or another financial instrument incorrectly signals a reversal from an uptrend to a downtrend. In other words, prices may move higher in a broad-based incline, only to encounter significant fundamental resistance or change.
Detailed explanation-3: -STRIPS refers to Separate Trading of Registered Interest and Principal Securities. A STRIP bond is a debt instrument in which the principal amount and coupon payments are sold separately.