Trade flat

Trade flat
For convertibles, trade without accrued interest. Preferred stock always "trades flat," as do bonds on which interest is in default or is in doubt.

Trade flat
Used in the context of general equities. For convertibles, trade without accrued interest, preferred stock always trades flat as do bonds on which interest is in default or is in doubt.

(2) Any security that trades without accrued interest or at a price that includes accrued interest is said to trade flat. Flight to quality The tendency of investors to move towards safer, government bonds during periods of high economic uncertainty.

The primary reason for a bond to trade flat is that the company has been unable to pay the interest it has promised to pay, so investors don't have much confidence that any future interest will be paid to them by the company.

A draft addressed to a commercial enterprise. See: Draft.
Trade flat ...

1) A bond in default trades flat; that is, the price quoted covers both principal and unpaid,
accrued interest.
2) Any security that trades without accrued interest or at a price that includes accrued
interest is said to trade flat.

$25, trade on the stock exchanges, pay fixed specified quarterly interest payments, are redeemable at par plus accrued interest at the option of the company after a specified period (generally 5 years), and mature in 30 to 50 years. PINES trade flat ...

When the quoted market price of a bond or debenture is only the total cost of the bond or debenture, instead of the cost of the debt instrument plus accrued interest. Bonds and debentures in default of interest trade flat.

Means that the quoted market price of a bond or debenture is its total cost (as opposed to an accrued interest transaction). Bonds and debentures in default of interest trade flat.
Floating Exchange Rate ...

in default, an all inclusive invoice price is quoted, which can be presumed to reflect the market's assessment of the likelihood that future coupons will actually be paid as scheduled. Such bonds are said to trade flat. Income bonds trade flat.

See also: Values, Banks, Saving, Ginnie Mae, Settlement Date