to discount

Definition of to discount in English English dictionary: discompt; To deduct from an account, debt, charge, and the like; to make an abatement of; as, merchants sometimes discount five or six per cent for prompt payment of bills; A reduction in price; Of goods, available at reduced prices; discounted
This store specializes in discount wares.; A deduction made for interest, in advancing money upon, or purchasing, a bill or note not due; payment in advance of interest upon money; Of a store, specializing in goods at reduced prices
If you're looking for cheap clothes, there's a discount clothier around the corner.; {n} a drawback, allowance, abatement; {v} to draw or pay back, to deduct, to lend the amount of, deducting the interest at the time; When the market price of a newly issued security is lower than the issue price If it is higher, the difference is called a premium; The rate of interest charged in discounting; To lend money upon, deducting the discount or allowance for interest; as, the banks discount notes and bills of exchange; 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; the act of reducing the selling price of merchandise give a reduction in price on; "I never discount these books-they sell like hot cakes; To take into consideration beforehand; to anticipate and form conclusions concerning (an event); When the market price of a closed-end fund is less than its underlying net asset value (NAV), it is said to be trading at a discount That discount allows you to buy a dollar's worth of securities for less than a dollar So if a closed-end fund trading at a 10% discount owns a portfolio of stocks collectively worth $10 a share, you can buy that portfolio for $9 a share Unlike open-end funds, closed-ends trade like stocks on an exchange so a fund's price is determined by investor demand for its shares A lack of demand can cause the fund's market price to be less than its underlying portfolio value--the source of the discount See "Closed or Open End " BACK TO TOP; dis·count discounts discounting discounted Pronounced for meanings; and 2., and for meaning 3; The amount by which the purchase price of a security is less than the principal amount or par value; interest on an annual basis deducted in advance on a loan; A discount is a reduction in the usual price of something. They are often available at a discount Full-time staff get a 20 per cent discount; ~ The amount by which the purchase price of a security is less than the principal amount, or par value; the act of reducing the selling price of merchandise; The amount by which the current value of a share is below its asset backing; in loan originations, a discount refers to an amount withheld from loan proceeds by a lender Generally the purpose of a discount is to adjust the yield upward, either in lieu of interest or in addition to interest The rate or amount of discount depends on money market conditions, the credit of the borrower, and the rate or terms of the note One discount is equal to 1% of the loan amount; The amount charged by a financial institution when a note receivable is discounted, calculated as maturity value times discount rate times discount period; To leave out of account; to take no notice of; An amount deducted from the regular price for those who purchase with cash instead of credit; Difference between the face amount of a note or mortgage and the price at which the instrument is sold in the secondary market; (1) The amount a price would be reduced to purchase a commodity of lesser grade; (2) sometimes used to refer to the price difference 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 futures contract is lower than that of May; (3) applied to cash grain prices that are below the futures price See also Option Premium; give a reduction in price on; "I never discount these books-they sell like hot cakes"; Is an ARMwith an initial discount, the lender gives up a number of percentage points of interest to give you a lower rate and lower payments for part of the mortgage term After the discount period, the ARM rate will probably go up depending on the index rate; If a shop or company discounts an amount or percentage from something that they are selling, they take the amount or percentage off the usual price. This has forced airlines to discount fares heavily in order to spur demand; - 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; a refund of some fraction of the amount paid; Before 1864 private banks issued their own paper money Paper money far from home traded at a discount to local currency The discount on paper money issued by solvent banks equaled the cost of transporting the bill to the issuing bank and the value of the interest lost on the money while it was in transit The discount on New York City bills was half a percent in Columbus in 1863; {f} disregard, ignore; reduce the price of, mark down; give a discount; To lend, or make a practice of lending, money, abating the discount; as, the discount for sixty or ninety days; Reduction in product price or cost of a service A discount if the difference between the nominal face value of a loan and actual cash received by the borrower because interest is paid at the beginning of a loan based on the sum to be repaid at maturity; (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 at a discount to May," indicating that the price for the July future is lower than that of May; an amount or percentage deducted; In an ARM with an initial rate discount, the lender gives up a number of percentage points in interest to give you a lower rate and lower payments for part of the mortgage term (usually for one year or less) After the discount period, the ARM rate will probably go up depending on the index rate; Difference between the price paid for a security and the security's face value; (1) The difference between a bond's current price and its par value (2) To apply news about a company in measuring its current stock price, for example, taking into account a change in management that has been anticipated for some time (3) The sale of securities, like bonds or closed-end mutual funds, at prices less than their face value (4) The relationship between two currencies For example, the British pound may sell at a discount to the German mark Diversification The spreading of risk by putting money in several different classes of investments, such as stocks, bonds, money market instruments, and real estate, or in several stocks of different industries Dividend A share of a company's earnings paid out quarterly to shareholders, usually in cash, but possibly in the form of new shares of stock; (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 at a discount to May," indicating that the price for the July futures is lower than that of May; 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; {i} price reduction; If you discount an idea, fact, or theory, you consider that it is not true, not important, or not relevant. However, traders tended to discount the rumor = disregard. a reduction in the usual price of something 10% discount/discount of 25% etc; 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; In an ARM with an initial rate discount, the lender gives up a number of percentage points in interest to reduce the rate and lower the payments for part of the mortgage term (usually for one year or less) After the discount period, the ARM rate usually increases according to its index rate; 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; bar from attention or consideration; "She dismissed his advances"