A deduction made for interest, in advancing money upon, or purchasing, a bill or note not due; payment in advance of interest upon money.
Amount below the par value; difference between a bond principal and the present value.
To sell a promissory note before maturity at a price less than the outstanding principal balance of the note at the time of sale. It may also be the amount deducted in advance by the lender from the face of the note. Back to the Top
(1) The amount by which a bond or preferred stock may sell below its par value. (2) The notion that market prices "takes into account@ or include all publicly available relevant information.
When the market price of a listed scheme is less than the actual NAV of the units, then it is said to be tradiing at a discount.
Referring to the selling price of a bond, a price below its par value. Related: premium.
The amount by which a bond or preferred stock sells below its par or face value.
The excess to the nominal or face value of a security over its price.
A predetermined amount, deducted from the face of an invoice, earned for prompt payment. A sales promotion feature that is a markdown from the regular price for a limited time. A percentage deducted for volume purchases.
The difference between an amount due at a future date and its present value at a specified rate of interest. In estimating pension costs, to discount for mortality or turnover is to deduct or make allowance for those employees who will die or terminate employment before retirement. Also, based on an assumed rate of interest, a benefit due in the future can be purchased with discounted dollars today.
(1) The amount a price would be reduced to purchase a commodity of lesser grade; (2) sometimes used to refer to the price differences between futures of different delivery months, as in the phrase "July is trading at a discount to May," indicating that the price of the July future is lower than that of May; (3) applied to cash grain prices that are below the futures price
The amount by which a bond's par exceeds its market price. Also, the amount by which the value of a closed-end fund's holdings exceeds its market price. Also, anything selling below its normal price. opposite of premium. see also accrued market discount, bank discount, dividend discount model, loss leader, original issue discount, volume discount, deep discount bond.
To convert payment instruments to cash immediately, exporters must obtain a loan using draft, for example, as collateral or sell the draft to an investor or a bank for a fee. When the draft is sold to an investor or a bank, it is sold at discount. The exporter receives an amount less than the face value of the draft so that when the draft is paid at its face value at the specified future date, the investor or bank receives more than if paid to the exporter. The difference between the amount paid to the exporter and the face amount paid at maturity is called a discount and represents the fees or interest (or both) the investor or bank receives for holding the draft until maturity. Some draft are discounted by the investor or bank without recourse to the exporter in case the party that is obligated to pay the draft defaults; others may be discounted with recourse to the exporter, in which case the exporter must reimburse the investor or bank if the party obligated to pay the draft defaults. The exporter should be certain of the terms and conditions of any financing arrangement of this nature.
Describes the difference between the price (lower) paid for a security and the security's face amount (or maturity value) when it was issued. If you hear a bond being quoted at 98, then it is most likely being quoted a discount of 2 off the maturity value of 100. An option is said to be trading at a discount if it is selling for less than its intrinsic value. A futures contract is considered to be trading at a discount when it is trading for less than the price of the underlying security.
If the share price of an investment trust is lower than the net asset value (NAV) per share, the trust is said to be trading at a discount. The discount is shown as a percentage of the NAV. The opposite of a discount is a premium. It is more common for an investment trust to trade at a discount than a premium. Please see Premium.
Generally, the amount by which the par value of a security exceeds the price paid for the security. For tax purposes, the actual amount of discount with respect to a particular security may be affected by the existence of any original issue discount or original issue premium. Compare: PREMIUM. See: ACCRETION OF DISCOUNT; MARKET DISCOUNT BOND; ORIGINAL ISSUE DISCOUNT.
Any reduction of a Shipper' s, or Logistics Provider's, agreed rates of business.
Refers to a bond that is trading on the secondary market at a price below its issuing price. For instance, a bond issued at $1,000 par value may drop below $1,000 on the bond market if interest rates increase. A bond or other security that is selling at under par value is said to be trading "at a discount." (Also see premium.)
An amount paid below the normal price level. 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. An option can also trade at a discount, meaning that the premium is less than the intrinsic value. Opposite to Premium.
(Verb) to take out interest in advance; (Noun) the interest amount deducted in advance.
Special pricing flexibility used to encourage increased use of products, or to improve competitive marketing.
To sell at a reduced value; the difference between face value and cash value.
An allowance or deduction granted by the seller to thebuyer, usually when certain stipulated conditions are met by the buyer, which reduces the cost of the goods purchased. However, discounts may be granted by the seller without reference to stipulated conditions. An example of such use of discount is the application of discount to a nominal or "list" price to establish the "net" or actual price. See Cash Discount; Quantity Discount; Standard Package Discount; Trade Discount.
An adjective used to describe an option that is trading at a price less than its intrinsic value (i.e., trading below parity).
If the share price is lower than the NAV (Net Asset Value), the company is trading at a discount.
(1) In commercial trade, a rebate in the selling price of goods or services, usually made by deducting a certain percentage from the quoted price.(2) In finance, the deduction from the face value of Commercial paper such as a Bill of exchange or acceptance, in exchange for the option of receiving the relative cash payment before the maturity of the paper. By purchasing at a discount, the buyer of the commercial paper is compensated for the loss of interest on the funds up to the paper’s maturity.(3) When referring to the selling price of a bond or other security, this indicates a market price below its par value.(4) In accounting, the calculation of the present value of a stream of future Cash flows. It is the opposite of Compounding.(5) In foreign exchange trading, a foreign currency sells at a discount on the forward market when the forward rate is lower than the spot rate (assuming that the domestic currency is quoted on a direct basis), i.e. that it is cheaper to buy the foreign currency forward rather than spot. Français: Escompte Español: Descuento
Any reduction in price or value, especially when below a stated or normal price. To buy or sell commercial paper at a price below face value to account for interest to accrue before maturity.
1. When a bond is trading at a discount to par, this indicates that its price is lower than its nominal value. 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. See also Backwardation.
If the price of a spread bet is lower than the cash market price of the product, the spread bet is deemed to be trading at a discount
Opposite of a premium, anything selling below its normal price is said to be trading at a discount, for example, the amount by which a bond’s par exceeds its market price.
Amount at which a security is selling below its face value. Also applies to closed-end funds, options, etc.
The margin by which a share stands below its net asset value, particularly investment trusts which are often judged on this basis.
the reduction of a pre-agreed cost.For example, once home loans are paid in advance, the lender often grants a discount which allows the debtor to pay less in exchange for their prompt payment.A discount may also refer to the amount of money paid in order to secure preferred forms of financing.For example, homeowners interested in buying property will sometimes pay additionally to have VA or FHA insured mortgages.
A percentage deducted from the list (retail) price of a book, thereby determining the cost of the book to the dealer purchasing it from the publisher or wholesaler. Thus, a $10 book sold to a dealer at 40 percent discount costs $6 and from this 40 percent difference, the store's operating costs and profit must be derived.
Convertible: Difference between gross parity and a given convertible price. Most often invoked when a redemption is expected before the next coupon payment, making it liable for accrued interest. Antithesis of premium. General: Information that has already been taken into account and is built into a stock or market. Straight equity: Price lower than that of the last sale or inside market.
An amount deducted from a sum a sum of money.
An agreed upon percentage reduction deducted from the total transportation charges.
The share of the value of a payment made with a credit or debit card that the bank takes for its services. Also referred to as a merchant discount.
In the context of bonds payable and investments, the amount by which par value exceeds the price paid for a security. The discount generally represents the difference between the nominal interest rate and the actual or effective rate of return to the investor.
Method whereby a fee is earned through the purchase of an asset at less than face value
the amount by which the regular price is reduced Interest: the amount paid for the use of money
Describes the situation when the share price of an investment trust is less than the net asset value at the share.
Bonds which sell or are valued by the market at a price below par.
An allowance or deduction granted by the seller to the buyer who reduces the price of goods purchased. Such reductions are typically associated with reduced costs to the seller of doing business. Volume discounts that reflect either production or handling economies of scale or full utilization of transport equipment are examples.
a reduction in value or the act of reducing value.
the act of reducing the selling price of merchandise
interest on an annual basis deducted in advance on a loan
an amount or percentage deducted
give a reduction in price on; "I never discount these books-they sell like hot cakes"
a coupon that applies to all orders whether or not the customer enters in the code
a popular lure and is particularly effective where the value of your book is well established
a reduction from the full price
a reduction from the list price that you apply to a customer's purchase when they meet certain conditions
a reduction in the normal charge based on a specific amount of money or a percentage of the charge
a reduction to the gross price that a buyer is charged for goods
a set reduction off the lender's standard rate for a given period
a widespread phenomenon among those who sell goods
The difference between face value of an installment note and mortgage or deed of trust, and the present cash value.
Selling a security (usually a bond) for a price lower than its face value.
Term used to describe an option trading for less than its intrinsic value.
The amount by which the value of a security is less than its face, or par, value.
The difference in the price of a security and its net asset backing. In the context of a share issue, it may also refer to the difference between the issue price and the par value of the share.
Calculating the present value of a future income with respect to time and the time value of money (interest). Opposite of compounding.
1. A term used to reflect a reduced price granted by the seller; 2. The amount by which a bond's par value exceeds its market price; 3. The excess of par value of stock over its sales price.
To calculate the present value of a future cash flow. The difference between the face value and the price of an issue for issues selling below face value.
the difference between the par value of an issue and its actual price. Discounts, which occur when the price is below par, are amortized over the life of a bond/note.
The difference between the value of a security at maturity and the amount originally paid (if less than par) for the security.
An amount deducted in advance from the loan before the borrower is given the money. Also referred to as points. In secondary market sales, a discount is the difference between the sale price and the principle balance on the note. Contrast Premium.
a deduction on the cost or retail price of a good.
The amount by which an investment sells below par value.
The amount by which price of a bond is less than its par or face value. Treasury bills, like zero-coupon bonds, are sold at a discount. No interest payments are made, but the investor receives the full face value when the security matures.
Reduced book price offered by self-publishers to authors who prepay for copies in bulk.
A term meaning that the market price of a unit is selling for less than the actual NAV of the securities that make up that fund's portfolio.
The percentage of the original balance of the loan that is charged the borrower. Sometimes referred to as points. Also, the difference between the selling price of a mortgage and the amount due.
The amount by which the purchase price of a security is less that its face value.
In the long-term money market, securities such as bonds have an initial offering price. If the current price of the bond falls below its initial offering price, the bond is said to be trading at a discount. Discount is the opposite of premium.
The amount by which a security is quoted below its nominal value.
This term can have a number of meanings, depending on the context. When used in connection with a loan, it's where the bank deducts its interest payment before giving the loan proceeds to the borrower. For example, where $100 is borrowed at 10% for one year, the borrower receives only $90. For bonds, it's the difference between the current market price and the face amount of the bond.
The difference between the historical cost of a financial instrument and its notional value.
A bond that trades at a price lower than par.
The amount by which selling price of a debenture is below its par value. A bond that is sold at 99.50 has a discount of 50 basis points.
A reduction in the interest rate offered by the lender, usually for an additional fee referred to as discount points. It is a form of loan fee, sometimes called a buydown.
(1) To sell a note for less than the unpaid balance due on it. (2) The dollar difference between the unpaid balance of a note and the price for which a note holder sells the note.
The interest deducted prior to advancing or lending money against outstanding invoices.
The amount by which a security is issued or sold below its par or face value.
An option is trading at a discount if it is selling for less than its intrinsic value. If a future is trading for less than the price of the underlying security, it is considered to be trading at a discount. Something my wife is always looking for. Something that makes me very happy when she finds it.
Is the negative differential against the spot price. It can refer to an interest rate, price difference, amount under par, or other similar relationship.
Amount by which the current trading value of the security is below the face value.
When the share price is lower than the Net Asset Value (NAV), it is referred to as trading at a discount. The discount is expressed as a percentage of the Net Asset Value.
(1) A downward adjustment in price allowed for delivery of stocks of a commodity of lesser than contract grade against a futures contract; (2) sometimes used to refer to the price differences between futures of different delivery months, as in the phrase "July at a discount to May" indicating that the price of the July future is lower than that of May.
When a derivative is trading below the current market price it is said to be trading “at a discount.” A futures market that is trading below the level of the spot market is said to be trading at a discount.
The amount by which a bond's market price is lower than its issuing price (par value). A $1,000 bond selling at $970 carries a $30 discount.
the positive difference between the purchase price of a bond and its par value. Purchasing a bond at a discount suggests that the purchaser paid less than par value for the bond.
The amount of money, usually stated as a percentage, deducted from the face value of a note. The borrower receives the net amount after the discount has been deducted. The discount is computed to give the effective rates of interest agreed upon. Discounting a Loan - Selling a loan for less than its face value (common with second mortgages or loans bearing low interest rates).
In relation to an ESOP, a share will be acquired at a discount if it is acquired at less than the market value of that share.
the face value multiplied by the discount rate times the number of days divided by 360
a deduction given to an insured for actions or items that lower risk.
"The amount by which the face value of a bond exceeds the issue price, which occurs when the market interest rate is higher than the face interest rate."
Forward rate is lower than spot rate (2) an option that is trading for less than its intrinsic value.
A deduction from the stated or list price of a product or service in relation to the standard price. A discount is a selling technique to encourage customers to buy and is offered for a variety of reasons: for buying in quantity or for repeat buying; as a special offer to move a slow-moving line or for paying by cash, etc.
To sell a note for less than its face value.
Amount by which the purchase price of a security is less than its par value, which raises the effective yield of the security above the coupon rate.
An allowance or deduction granted by the seller to the buyer, usually when the buyer meets certain stipulated conditions that reduce the price of the products purchased. A quantity discount is an allowance determined by the quantity or value of the purchase. A cash discount is an allowance extended to encourage payment of an invoice on or before a stated date. A trade discount is a deduction from an established price for goods or services made by the seller to those engaged in certain businesses. See: price break.
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; Price differences between grades of cash contracts.
to reduce from an original price or an item's full worth.
The amount by which a bond is priced below its par value (face value). (See premium.)
Money which is taken off the price of something. You may need to collect coupons or vouchers before claiming the discount. Sometimes shops give a discount to their employees.
Something purchased or sold for less than the face value or stated price. Discounting is the calculation of the reduction of future payments to present worth.
The amount under face value paid for a security. A security trading at 99% of face value is said to be trading at a 1% discount under par. A security trading exactly at 100% of face value is trading at par value. The opposite of premium.
The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.
When price of a security issued sells at a price less than 100. Formula: Principal - (Principal * (Price / 100))
Difference between a bond's current market price and its face or redemption value.
(A) Commercially, an allowance from the list price of goods, made usually by the deduction of a certain percentage from the invoice price. Such discount must be specifically allowed in the Credit. (B) Financially, a deduction from the face value of commercial paper or Bankers Acceptance in consideration of receipt by the holder of cash before maturity of the instrument.
A reduction of the full price of goods or services by the provider of those goods or services.
Less than the spot price example: forward discount.
The act of selling a promissory note before maturity, at a price less than the outstanding full balance of the note.
The difference between a security's current market price and its estimated value.
a reduced price. Discounts are used to quickly reduce supplies on -hand, attract new buyers and reward past buyers.
A loan funded below par (100%). Lenders or investors will fund loans at a discount in order to increase the overall yield on the note.
the percentage reduction from the publisher's recommended retail price at which a book is sold to a bookseller.
The amount of money or the percentage of the principal deducted from the face value of a note. For example, a loan fee of 2% on a $100,000 loan would amount to a discount of $2,000 if the fee is deducted from the loan amount.
Any debt security selling below its par value (face value) is considered to be selling at a discount.
The amount by which the regular price of an item is reduced.
Cheaper than the spot price, e.g., forward discount
The sale of a note (or mortgage) for less than its face value.
(1) A bond trading in the market at a price below its face value. (2) The amount a bond's market price is below its face value. (3) Securities which are issued for less than their face value and mature at per such at T-bills. At maturity the difference between purchase price and face is considered interest. (4) As a verb, to apply all available information in evaluating the price of a security.
reduction in price from the base rate in order to purchase a lower grade.
A reduction in your premium if you or your car meet certain conditions that reduce the insurer's losses or expenses. For example, auto insurance discounts are given for cars with auto theft devices and for drivers and passengers who use seatbelts.
An amount deducted from the regular price for those who purchase with cash instead of credit.
Less than par. If a future delivery is selling at a discount to the spot delivery, then it's selling for a lower price than the spot price. See Premium.
Difference between the face amount of a note or mortgage and the price at which the instrument is sold in the secondary market.
The amount by which a preferred stock or bond may sell below its par value. Also used as a verb to mean "takes into account" as the price of the stock has discounted the expected dividend cut. (See: Premium)
When the market price of a newly issued security is lower than the issue price.
(Rabais) Reduction in rate or the premium for features which improve the risk or for when several coverages are incorporated into one policy.
When the market price of a newly issued share is lower than its issue price. The opposite of 'premium'.
An investment trust trades at a discount when the price of its shares is less than the value of the underlying assets.
1. A deduction from a gross sum or aggregate amount (i.e. often monetary in nature, but can be percentage or barter based).
1. (n) Selling below par, e.g., a $1,000 bond selling for $900. 2. (v.) Anticipating the effects of news on a security's value; for example, "The market had already discounted the effect of the labour strike by bidding the company's shareprice down".
A percentage or dollar reduction of the cost price or selling price of merchandise.
The amount by which the purchase price of a security is less than the principal amount or par value.
One way of thinking about the relationship of financial aid to the published cost of college. Some people think of their financial aid award as a discount, and others argue that the "published price" of college is an artificial concept.
Reduction from the full amount of a price or DEBT.
The amount deducted from the regular price for those when you pay cash instead of credit.
The amount by which a bond sells on the secondary market at less than its par value or face value.
a price reduction; to sell at a reduced price, in return for the purchase of a large quantity, payment in cash, rapid payment, etc.; or to sell a bill at below its face value.
Where the share price of an investment trust is trading below its net asset value(see NAV).
An option is trading at a discount if it is trading for less than its intrinsic value. A future is trading at a discount if it is trading at a price less than the cash price of its underlying index or commodity. See also Intrinsic Value and Parity.
A reduction made from the gross amount or value of something; a reduction made from the regular or list price.
When bonds or preferred stocks sell for less than their face value, they are said to be selling at a discount. Certain bonds, called original issue discount bonds, are issued at a discount but are worth par, or their full face value, at maturity. Other bonds are discounted when they are traded in the secondary market after they are issued, usually because the interest they pay is lower than the current market rate, or because the issuer's rating has been downgraded. Closed-end mutual funds can also trade at a discount to their net asset value (NAV).
If a bond is selling below its face value, it is said to sell at a discount.
The amount by which the sales price of a note (or financial instrument) is below or less than its face value. The purpose of a discount is to adjust the yield upward either in lieu of interest or in addition to interest. Discount points are payable to the lender by the borrower or seller to increase the lender's effective yield. One point is equal to 1% of the loan.
The amount at which a security sells below its asset backing (par value).
1: A bond that trades in the market at a price below its face or redemption value. A bond selling below par is said to be "selling at a discount." See: Discount Bond; Par 2: Securities, such as treasury bills, that are issued for less than their face value and mature at face value. At maturity, the difference between the purchase price and the face value is the interest. See: Original Issue Discount; Zero Coupon Security 3: To evaluate a security's current price, all applicable news and information about the corporation are used. 4: Relationship between two countries' currencies. For example, the French Franc may sell at a discount to the German Mark.
The difference between the lower price paid for a security and the security's face amount at issue.
Amount by which a bond sells below its face value. If a bond with a face value of $1,000 sells for $900, it is selling at a $100 discount.
Reduction in quoted base space rates usually earned by contract continuity.
A reduction applied to an insurance premium.
The amount by which a preferred share or bond sells below its par value.
An allowance or deduction granted by the vendor which reduces the cost of the goods or services being purchased.
The amount of dollars by which market value of a bond is less than par value or face value.
With regard to financing; it is an amount deducted from the original face amount of a note prior to the sale of the note.
1. Trade - An amount of money that a buyer deducts from a payment that is due to the seller. This discounted amount is a reward for making an early payment to the seller. 2. Bankers Acceptance Financing - Interest that is deducted from the face amount of the bankers' acceptance until the acceptance matures. See "Bankers' Acceptance."
