discount

(redirected from discounting)
Also found in: Dictionary, Thesaurus, Medical, Legal, Financial, Idioms.

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.
..... Click the link for more information.
 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.
..... Click the link for more information.
, 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 ?
According to the Lumina Foundation's "Unintended Consequences of Tuition Discounting," released in Nay, poorly managed tuition discounting strategies can impact colleges and universities in several ways:
Different forms of the discounting model include refinements based on levels of understanding of the market mechanism.
2036(a) as the IRS's weapon of choice--perhaps its only weapon--in its quest to vanquish FLP discounting (although Strangi, in particular, raises significant questions as to the proper application of Sec.
A new report published by the Lumina Foundation suggests that the common practice of tuition discounting may have unintended negative effects for both the schools and the students it was designed to help.
This means discounting for interest, for mortality and, when applicable, for vesting.