discount


discount
a deduction made from the normal cost or purchase price. Glossary of Business Terms
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1) Quality differences between those standards set for some futures contracts and the quality of the delivered goods. If inferior goods are tendered for delivery, they are graded below the standard, and a lesser amount is paid for them. They are sold at a discount;
2) Price differences between futures of different delivery months;
3) For short-term financial instruments, " discount" may be used to describe the way interest is paid. Short-term instruments are purchased at a price below the face value ( discount). At maturity, the full face value is paid to the purchaser. The interest is imputed, rather than being paid as coupon interest during the term of the instrument; for example, if a T-Bill is purchased for $974,150, the price is quoted at 89.66, or a discount of 10.34% (100.00 - 89.66 = 10.34). At maturity, the holder receives $1,000,000. The CENTER ONLINE Futures Glossary
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The amount by which the price for a security is less than its par or face value. The discount or difference between such a reduced value purchase price and the redemption ( par) value comprises all or part of the investor's compensation for owning the security. American Banker Glossary
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Convertible: Difference between gross parity and a given convertible price. Most often invoked when a redemption is expected before the next coupon payment ( coupon payments), making it liable for accrued interest. Antithesis of premium. Bloomberg Financial Dictionary
General: Information that has already been taken into account and is built into a stock or market. Bloomberg Financial Dictionary
Straight equity: price lower than that of the last sale or inside market. Bloomberg Financial Dictionary
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1. When a bond is trading at a discount to par, this indicates that its price is lower than its nominal value. Dresdner Kleinwort Wasserstein financial glossary
2. When a currency is at a discount in the foreign currency forward markets, this indicates that it is weakening in the forward market relative to the spot market. The forward discount is added to the spot rate quote as a result. Dresdner Kleinwort Wasserstein financial glossary
See also backwardation. Dresdner Kleinwort Wasserstein financial glossary
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Price expressed as the number of percentage points below par, e.g. a discount price of 2.0% equals a price of 98 when par is 100. Euroclear Clearing and Settlement glossary
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When the market price of a newly issued security is lower than the issue price. Exchange Handbook Glossary

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I. discount dis‧count 1 [ˈdɪskaʊnt] noun [countable]
1. COMMERCE a reduction in the cost of goods or services in relation to the normal cost:

• You can nearly always get books there at a discount.

• The company is trying to increase market share by selling its trainers at discount prices.

ˌbulk ˈdiscount COMMERCE
a lower price that is offered for buying a large number or amount of something:

• As twenty are required it might pay to ask your supplier for a bulk discount.

ˈcase rate ˌdiscount COMMERCE
the discount when you pay less for something because you buy a complete case (= box of goods) rather than just one thing
ˌcash ˈdiscount COMMERCE
a lower price that is offered for quick payment or payment in cash
no ˈclaims ˌdiscount INSURANCE
a lower price for insurance offered to an insured person or organization if they do not make a claim during a particular period of time:

• A motoring breakdown scheme is offering members a 20% no claims discount if they do not call out the service during the year.

ˌtrade ˈdiscount COMMERCE
a lower price offered by a producer to a shop or business:

• Our normal trade discount (33.3%) will be applied.

ˌvolume ˈdiscount COMMERCE
another name for bulk discount
2. FINANCE the amount by which the price of a security is less than the value shown on it:

• Zero-coupon bonds are sold at a discount to their face value and pay no interest until maturity.

3. fine rate of discount FINANCE if a bill of exchange is traded at a fine rate of discount, it is bought and sold at a price near to the amount shown on it, because the buyer knows there is little risk of it not being paid:

• Accepting Houses accept bills of exchange for a fee, which enables the bill to be traded at a fine rate of discount.

4. FINANCE if something in a financial market is traded at a discount, it is bought and sold at a lower price than something else to which it is compared:

• The premium of platinum over gold narrowed to $11, but there is a good chance platinum will trade at a discount to gold soon.

ˌbanker's ˈdiscount also ˌbank ˈdiscount FINANCE
the difference between the value shown on a bond, share etc that is bought by a bank from a customer, and the amount that the customer actually receives from the bank. The banker's discount is kept by the bank as payment
ˌbond ˈdiscount FINANCE
the difference between a bond's present price in the market and its actual value
  [m0] II. discount dis‧count 2 [ˈdɪskaʊnt] verb [transitive]
1. COMMERCE to offer something for sale at a lower price than usual:

• The retailers discounted the goods below prices set by the manufacturer.

• Games were discounted to as little as $5.

2. FINANCE to change the price of something in a financial market by taking into account good or bad news that affects it:

• I think the market has discounted almost all of what can go right with the economy this year.

3. FINANCE to sell Securities at less than the value shown on them. The person who buys the securities makes a profit when the borrower buys them back at their full value at the repayment date
4. FINANCE to sell a bill of exchange or other commercial bill before its normal payment date for less than it will be worth on that date. The buyer makes a profit when the bill is paid in full by the borrower at the repayment date

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   Generally used to describe when something is selling below its normal price. An asset or fund is described as being at discount when its value is above its market price. In the money markets it is the action of buying financial paper at less than par value. In the foreign exchange markets it is a margin by which the forward rate falls below spot. In the futures market it is referred to as backwardation. Opposite of premium.
   ► See also Backwardation, Premium.

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Ⅰ.
discount UK US /ˈdɪskaʊnt/ noun
[C or U] COMMERCE a reduction in the usual price of a product or service: get/receive a discount »

You get a discount if you buy four ink cartridges.

give/offer a discount »

Car manufacturers are offering discounts of up to 15% on all new models.

huge/deep/big discount »

They purchased the stock at a huge discount.

»

The price without discount will be around $55.

[C, usually singular] FINANCE the difference between the reduced price that you originally paid for a security, and the amount you will be paid back when it is ready to be paid: »

All these securities are sold at a discount to their par value.

See also BANKER'S DISCOUNT(Cf. ↑banker's discount), BOND DISCOUNT(Cf. ↑bond discount), BULK DISCOUNT(Cf. ↑bulk discount), CASH DISCOUNT(Cf. ↑cash discount), CASE RATE DISCOUNT(Cf. ↑case rate discount), DEEP DISCOUNT(Cf. ↑deep discount), FREQUENCY DISCOUNT(Cf. ↑frequency discount), NO CLAIMS BONUS(Cf. ↑no claims bonus), TRADE DISCOUNT(Cf. ↑trade discount), VOLUME DISCOUNT(Cf. ↑volume discount)
Ⅱ.
discount UK US /dɪˈskaʊnt/ US  /ˈdɪskaʊnt/ verb
[T] COMMERCE to sell a product or service for less than the usual price: »

Our entire inventory is discounted below retail prices.

discount sth by 55%/a quarter, etc. »

The initial charges will be 5.25%, discounted by 2% to 3.25 % until 31 January.

[T, usually passive] STOCK MARKET if shares are discounted, they go down in price, often following bad news: »

Stocks were being discounted because of political concerns related to the upcoming election.

[T] FINANCE to buy a bill of exchange before its payment date at a price that is lower than its value, in order to make a profit when it is paid on its payment date: »

If an exporter has good credit, the bank may purchase or discount his collection bills.

Ⅲ.
discount UK US /ˈdɪskaʊnt/ adjective [before noun]
COMMERCE DISCOUNTED(Cf. ↑discounted): »

discount airfares/tickets/hotels

FINANCE, STOCK MARKET DISCOUNTED(Cf. ↑discounted): »

discount bills of exchange


Financial and business terms. 2012.

Synonyms:

Look at other dictionaries:

  • DISCOUNT — DISCOU Pratiquent le discount (le discompte, selon la terminologie française actuelle) les magasins qui, dans le commerce de détail, vendent à des prix inférieurs à ceux des autres détaillants des articles qui font l’objet d’une publicité.… …   Encyclopédie Universelle

  • discount — dis·count 1 / dis ˌkau̇nt/ n: a reduction made from the gross amount or value of something: as a: a reduction made from a regular or list price or a proportionate deduction from a debt account usu. made for prompt payment or for payment in cash b …   Law dictionary

  • Discount — Dis count , n. [Cf. F. d[ e]compte. See {Discount}, v. t.] 1. A counting off or deduction made from a gross sum on any account whatever; an allowance upon an account, debt, demand, price asked, and the like; something taken or deducted. [1913… …   The Collaborative International Dictionary of English

  • Discount — Dis count (?; 277), v. t. [imp. & p. p. {Discounted}; p. pr. & vb. n. {Discounting}.] [OF. desconter, descompter, to deduct, F. d[ e]compter to discount; pref. des (L. dis ) + conter, compter. See {Count}, v.] 1. To deduct from an account, debt,… …   The Collaborative International Dictionary of English

  • discount — [n] reduction in cost abatement, allowance, commission, concession, cut, cut rate, decrease, deduction, depreciation, diminution, drawback, exemption, knock off*, markdown, modification, percentage, premium, qualification, rebate, remission,… …   New thesaurus

  • Discount — Dis count (?; 277), v. i. To lend, or make a practice of lending, money, abating the discount; as, the discount for sixty or ninety days. [1913 Webster] …   The Collaborative International Dictionary of English

  • discount — ► NOUN ▪ a deduction from the usual cost of something. ► VERB 1) deduct a discount from (the usual price of something). 2) disregard as lacking credibility or significance. 3) Finance buy or sell (a bill of exchange) before its due date at a… …   English terms dictionary

  • discount — or discount rate [dis′kount΄; ] for v., also [ dis kount′] n. [< OFr desconter, to count off < ML discomputare: see DIS & COMPUTE] 1. a) a reduction from a usual or list price b) a deduction from a debt, allowed for paying promptly or in… …   English World dictionary

  • Discount — can refer to: Discounts and allowances: reductions to a basic price of goods or services; Discounting: a financial mechanism in which a debtor obtains the right to delay payments to a creditor; Discount (band): a punk rock band that formed in… …   Wikipedia

  • discount — [DISCÁUNT] s. n. reducere de preţ pentru un cumpărător anumit, în anumite condiţii de achiziţionare a mărfii. (< engl. discount) Trimis de raduborza, 15.08.2008. Sursa: MDN …   Dicționar Român

  • discount — / diskaʊnt/, it. /di skaunt/ s. ingl. (propr. sconto ), usato in ital. al masch. (comm.) [pubblico esercizio che vende beni di consumo in grandi quantità e a prezzi scontati] ▶◀ ‖ ipermercato, supermarket, supermercato …   Enciclopedia Italiana


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