Financial Dictionary

This dictionary contains:
24549
financial terms

Discount




Discount

1) General: Information that has already been taken into account and is built into a stock or market. 2) Straight equity: Price lower than that of the last sale or inside market.

RELATED TERMS
--------------------------------------

Account
1) In the context of bookkeeping, refers to the ledger pages upon which various assets, liabilities, income, and expenses are represented. 2) In the context of investment banking, refers to the status of securities sold and owned or the relationship between parties to an underwriting syndicate. 3) In the context of securities, the relationship between a client and a broker/dealer firm allowing the firm's employee to be the client's buying and selling agent.

Stock
US equivalent of the British word "share", a block of shares with a nominal value of 100, or various kinds of fixed-interest securities; in Britain, goods stored ready for sale, raw materials, work in progress and finished but unsold products.

Market
1) The total demand for a good. 2) The set of all actual and potential buyers of a good or service. 3) The place where people buy and sell. 4) The process by which buyers and sellers of goods, services and factors of production interact to determine prices and quantifies.

Straight
Direct telephone line, compared to an outside line that requires a telephone number to be dialed.

Equity
1) Ownership interest in a firm. 2) The residual dollar value of a futures trading account, assuming its liquidation is at the going trade price. 3) In real estate, dollar difference between what a property could be sold for and debts claimed against it. 4) In a brokerage account, equity equals the value of the account's securities minus any debit balance in a margin account. 5) Shorthand for stock market investments.

Price
The cost of a good or service to the consumer.

Lower
To decrease (a price, tax rate, interest rate, etc.).

Sale
An agreement between a buyer and a seller on the price to be paid for a security, followed by delivery.



SIMILAR TERMS
--------------------------------------

Discharge of bankruptcy
The termination of bankruptcy proceedings, resulting in cancellation of the debtor's obligations.

Discharge of lien
An order terminating a lien on property.

Disclaimer of opinion
An auditor's statement that does not express any opinion regarding the company's financial condition.

Disclosure
A company's release of all information pertaining to the company's business activity, regardless of how that information may influence investors.

Discontinued operations
Divisions of a business that have been sold or written off and that no longer are maintained by the business.

Discount arbitrage
A riskless arbitrage in which a discount option is purchased and an opposite position is taken in the underlying security.

Discount bond
Debt sold for less than its principal value. If a discount bond pays no coupon, it is called a zero coupon bond.

Discount broker
An intermediary individual or company who deals in discounts to other companies' products or services.

Discount factor
Present value of $1 received at a stated future date.

Discount interest
Interest at a beginning of the loan.

Discount payment
The difference between the face value and the price paid for a security.

Discount period
The period during which a customer can deduct the discount from the net amount of the bill when making payment.

Discount rate
The interest rate that the Federal Reserve charges a bank to borrow funds when a bank is temporarily short of funds.

Discount securities
Non-interest-bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., US Treasury bills.

Discount window
Facility provided by the Fed enabling member banks to borrow reserves against collateral in the form of government securities or other acceptable paper.

Discount yield
The yield or annual interest rate on a security sold to an investor at a discount.

Discounted basis
To sell a debt instrument below maturity value, so that the difference makes up all or part of the interest.

Discounted cash flow (DCF)
Future cash flows multiplied by discount factors to obtain present values.

Discounted dividend model (DDM)
A formula to estimate the intrinsic value of a firm by figuring the present value of all expected future dividends.

Discounted in-by market
Unannounced information that is widely accepted or anticipated, and hence is already taken into account in the pricing of the security-market.

Discounted payback
The length of time needed to recoup the present value of an investment.

Discounted payback period rule
An investment decision rule in which cash flows are discounted at an interest rate and then one determines how long it takes for the sum of the discounted cash flows to equal the initial investment.

Discounting
Calculating the present value of a future amount. Discounting is opposite to compounding.

Discounting the news
An adjustment of a stock's price as speculators bid the price up or down in anticipation of news about the company, whether good or bad.

DISCOVERY Credit Union
DISCOVERY is a credit union with head office in WYOMISSING, PA

DISCOVERY NICKEL Limited
DISCOVERY NICKEL Limited is a large Australian company in the field of materials. Their Australian Stock Exchange (ASX) code is DNL.

Discrepancy
Any deviation from the conditions stipulated in a letters of credit. Discrepancies void letter of credit protection.

Discrete compounding
Compounding the time value of money for separate time intervals.

Discrete random variable
A random variable that can take only a certain specified set of individual possible values.

Discrete variable
Variable like 1, 2, 3. Bond ratings are examples of discrete classifications.

Discretion
Freedom given to the floor broker by an investor to use his judgment regarding the execution of an order. Discretion can be limited, as in the case of a limit order that gives the floor broker some distance from the stated limit price to use his judgment in executing the order.

Discretionary account
Account over which an individual or organization, other than the person in whose name the account is carried, exercises trading authority or control.

Discretionary cash flow
Cash flow that is available after the funding of all positive net present value (NPV) capital investment projects.

Discretionary income
The amount of income a consumer has available after purchasing essentials such as food and shelter.

Discretionary order
A type of buy order or sell order that gives the broker the freedom and power to make the execution at any time and price that is seen fit and reasonable, given the investor's goals.

Discretionary proposition
A proposal on a proxy card that brokers can cast in favor of management if they have not yet heard from the beneficial holder ten days before the annual meeting.

Discretionary reserves
Balance sheet accounts representing temporary accumulations of earnings from the current year or the recent past.

Discretionary trust
1) In the context of mutual funds, refers to a mutual fund or unit trust whose management decides on the best way to use the assets without restriction to a specific type of security. 2) In the context of trusts, refers to a personal trust in which a trustee has the power of decision as to how much income or principal each beneficiary receives.

Discriminate analysis
A statistical process that links the probability of default to a specified set of financial ratios.



PREVIOUS AND NEXT TERMS
--------------------------------------

Discharge of bankruptcy
The termination of bankruptcy proceedings, resulting in cancellation of the debtor's obligations.

Discharge of lien
An order terminating a lien on property.

Disclaimer of opinion
An auditor's statement that does not express any opinion regarding the company's financial condition.

Disclosure
A company's release of all information pertaining to the company's business activity, regardless of how that information may influence investors.

Discontinued operations
Divisions of a business that have been sold or written off and that no longer are maintained by the business.

Discount

Discount arbitrage
A riskless arbitrage in which a discount option is purchased and an opposite position is taken in the underlying security.

Discount bond
Debt sold for less than its principal value. If a discount bond pays no coupon, it is called a zero coupon bond.

Discount factor
Present value of $1 received at a stated future date.

Discount interest
Interest at a beginning of the loan.

Discount payment
The difference between the face value and the price paid for a security.

We thank you for using the Financial Dictionary to search for Discount. If you have a better definition for Discount than the one presented here, please let us know by making use of the suggest a term option. This definition of Discount may be disputed by other professionals. Our attempt is to provide easy definitions on Discount and any other medical topic for the public at large.
 

This dictionary contains 24549 terms.







iscount / dscount / dicount / disount / discunt / discont / discout / discoun / ddiscount / diiscount / disscount / disccount / discoount / discouunt / discounnt / discountt / eiscount / riscount / fiscount / viscount / ciscount / xiscount / siscount / wiscount / dscount / diwcount / diecount / didcount / dixcount / dizcount / diacount / diqcount / disxount / dissount / disdount / disfount / disvount / dis ount / disc9unt / disc0unt / discpunt / disclunt / disckunt / disciunt / disc8unt / disco7nt / disco8nt / discoint / discoknt / discojnt / discohnt / discoynt / disco6nt / discoubt / discouht / discoujt / discoumt / discou t / discoun5 / discoun6 / discouny / discounh / discoung / discounf / discounr / discoun4 /