A dividend coupon (Swedish: utdelningskupong) is a detachable part of a share certificate that was historically handed in to the company to collect a dividend. Each coupon corresponded to one dividend. This is where the term kupongbolag comes from, meaning companies that are not CSD-registered companies.
Today coupons are rarely used, and many companies have issued no share certificates at all. For the company to know who is entitled to the dividend, it is therefore important that the share ledger is up to date.
A dividend is when a limited company distributes part of its profit to its shareholders.
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A share certificate is written proof that a person owns certain shares in a limited company.
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A non-CSD company (kupongbolag) is a limited company not registered with a CSD, like most Swedish companies.
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A CSD-registered company is a limited company whose share ledger is kept by a central securities depository.
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