[mahrk-doun] 
| 1. | a reduction in price, usually to encourage buying. |
| 2. | the amount by which a price is reduced. |
| mark·down (märk'doun') n.
|
Markdown
The difference between the highest current bid price among broker-dealers in the market and the lower price that a dealer charges a customer.
Investopedia Commentary
The broker offers a lower price to try stimulate trading in hopes that they will make the money back on the extra commissions.
Related Links
Brokers and Online Trading
See also: Bid, Broker-Dealer, Dealer, Markup
markdown
A decrease in a security price made by a dealer because of changing market conditions. For example, a bond trader may take a markdown in long-term bonds held in inventory when market interest rates rise. Compare markup 1.
The difference between the price paid by a dealer to a retail customer and the price at which the dealer can sell the same security to a market maker. Compare markup 3.