In a general sense, an allowance or deduction made from a gross sum on any account whatever.
In a more limited and technical sense, the taking of interest in advance. A deduction from an original price or debt, allowed for paying promptly or in cash. Method of selling securities (e.g., treasury bills) which are issued below face value and redeemed at face value.
Difference between a bond's current market price and its face value.
Reduction in normal selling price of goods.
The low initial interest rate lenders offer on adjustable-rate mortgages. It usually applies for one or two years. After the discount period ends, the rate usually increases, depending on the index used to determine the interest rate.
To purchase an instrument or other right to the payment of money, usually for an amount less than the face amount or value of the right. A discount by a bank means a drawback or deduction made upon its advances or loans of money, upon negotiable paper or other evidences of debt payable at a future day, which are transferred to the bank.
Although the discounting of notes or bills, in its most comprehensive sense, may mean lending money and taking notes in payment, yet, in its more ordinary sense, the discounting of such means advancing a consideration for a bill or note, deducting or discounting the interest which will accrue for the time the note has to run. Discounting by a bank means lending money upon a note, and deducting the interest or premium in advance. That step in lending transaction where interest on loan is taken in advance by deducting amount therefor for term of loan, giving borrower face value of obligation less interest. Russell v. Lumbermen's Mortg. Co., Com.Pl., 27 Ohio Misc. 171, 273 N.E.2d 803, 804.
See also rebate
@ quantity discount
Allowed manufacturers or wholesalers for purchases in large amounts. Robinson Patman Act requires that such be justified by savings of seller.
- trade discount
@ discount broker
A bill broker; one who discounts bills of exchange and promissory notes, and advances money on securities. A securities broker that executes buy and sell orders at rates lower than full service brokers
@ discount loan
A loan in which the bank deducts the interest in advance at the time the loan is made
@ discount market
Segment of the money market in which banks and other financial institutions trade commercial paper
@ discount rate
Percentage of the face amount of commercial paper which a holder pays when he transfers such paper to a financial institution for cash or credit. Rate charged for discounting loan.
See discount
The rate of interest used in the process of finding present values (discounting). The discount rate is the rate charged Federal Reserve System member banks for borrowing from the country's district Federal Reserve banks. The rate, which is set by the Federal Reserve Board, controls the supply of money available to banks for lending and provides a floor for interest rates
@ discount shares
Shares of stock issued as fully paid /and nonassessable for less than the full lawful consideration. Par value shares issued for cash less than par value.
Discount shares are considered a species of watered shares and may impose a liability on the recipient equal to the difference between the par value and the cash for which such shares were issued
@ discount stock
See discount shares
@ discount yield
Yield on a security sold at a discount

Black's law dictionary. . 1990.

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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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