discount

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discount,

in banking and investment, fee for lending money, which the banker deducts from the loan when it is given. Thus, with a $1,000 loan at a 6% discount, the borrower receives $940 and repays $1,000. Unlike a discount, interestinterest,
charge for the use of credit or money, usually figured as a percentage of the principal and computed annually. Simple interest is computed annually on the principal.
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 is paid periodically. Central banks, as in the U.S. Federal Reserve SystemFederal Reserve System,
central banking system of the United States. Established in 1913, it began to operate in Nov., 1914. Its setup, although somewhat altered since its establishment, particularly by the Banking Act of 1935, has remained substantially the same.
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, charge a discount when lending notes to member banks. Such a fee is often called a rediscount. When bills of exchange are cashed in advance, a percentage is discounted from the price they would bring at maturity. When securities are sold at less than par, they are said to be sold at a discount. Trade discount is a deduction from the list price. Discounts from transportation rates are called rebates. Certain banks specializing in banks' and bankers' acceptances, U.S. Treasury certificates of indebtedness, U.S. bonds approaching maturity, U.S. Treasury bills, and other high-quality, short-term credit obligations call themselves discount corporations.

discount

[′dis‚kau̇nt]
(industrial engineering)
A reduction from the gross amount, price, or value.

discount

1. at a discount
a. below the regular price
b. (of share values) below par
c. held in low regard; not sought after or valued
2. offering or selling at reduced prices
References in periodicals archive ?
One study has examined the relationship between BMI and social temporal discounting (Bickel et al, 2014).
3 Discounting can affect the customer's perception of the value of your product--the 'you get what you pay for' syndrome.
In this paper, we will review how the behavioral economic concept of delay discounting has been employed to understand addiction.
Banks in need of extra reserves began to use their Treasuries as collateral for discount window loans rather than discounting bills.
The first of the three cases discussed in this article present a methodology for discounting partial interests that was accepted by the Tax Court.
Different forms of the discounting model include refinements based on levels of understanding of the market mechanism.
The major issue in discounting future costs and benefits concerns what discount rate to use.
Discounting is the process by which the subjective value of an outcome is altered because its obtainment is either delayed or uncertain (see Madden and Bickel 2010, for a review).
(For more information on FLPs, see Schlueter, Tax Clinic, "Discounting FLP Interests," TTA, February 2004, p.
But tuition discounting (currently practiced primarily by the private sector) has come under fire recently in studies such as the USA Group Foundation report released in December 2000 called "Discounting Toward Disaster" and the May 2003 Lumina Foundation research on "Unintended Consequences of Tuition Discounting." These studies point out that, in the aggregate, institutions that have increased their discounts have not seen corresponding improvement in their results (e.g., quality profile, enrollments, etc.).
Like myriad other subjective concepts in the appraisal profession, the proper selection of frequency of discounting in income capitalization analysis is an open topic for discussion.
Assuming all other variables are equal, selecting a lower discount rate makes the weighted-average amortizable life less important because future tax benefits are not reduced as much in discounting to present value.