| 1. | to deduct a certain amount from (a bill, charge, etc.): All bills that are paid promptly will be discounted at two percent. |
| 2. | to offer for sale or sell at a reduced price: The store discounted all clothing for the sale. |
| 3. | to advance or lend money with deduction of interest on (commercial paper not immediately payable). |
| 4. | to purchase or sell (a bill or note) before maturity at a reduction based on the interest for the time it still has to run. |
| 5. | to leave out of account; disregard: Even if we discount the irrelevant material, the thesis remains mediocre. |
| 6. | to allow for exaggeration in (a statement, opinion, etc.): Knowing his political bias they discounted most of his story. |
| 7. | to take into account in advance, often so as to diminish the effect of: They had discounted the effect of a decline in the stock market. |
| 8. | to advance or lend money after deduction of interest. |
| 9. | to offer goods or services at a reduced price. |
| 10. | the act or an instance of discounting. |
| 11. | an amount deducted from the usual list price. |
| 12. | any deduction from the nominal value. |
| 13. | a payment of interest in advance upon a loan of money. |
| 14. | the amount of interest obtained by one who discounts. |
| 15. | an allowance made for exaggeration or bias, as in a report, story, etc.: Even after all the discounts are taken, his story sounds phony. |
| 16. | selling or offered at less than the usual or established price: discount theater tickets. |
| 17. | selling goods at a discount: a discount drugstore. |
| 18. | at a discount,
|
Discount
The condition of the price of a bond that is lower than par. The discount equals the difference between the price paid for a security and the security's par value.
Investopedia Commentary
For example, if a bond with a par value of $1,000 is currently selling for $990 dollars, it is selling at a discount.
Related Links
Bond Basics Tutorial
Advanced Bond Concepts
See also: Banker's Acceptance, Discount Bond, Original Issue Discount, Premium, T-Bill, Zero Coupon Bond
discount
discount
To adjust the value of an asset on the basis of information rather than activity or events. For example, investors may already have discounted a firm's stock price because of the anticipation of weak earnings.
To deduct the charge for making a loan from the loan's principal before distributing funds to the borrower.