Online Encyclopedia

DISCOUNT

Online Encyclopedia
Originally appearing in Volume V08, Page 312 of the 1911 Encyclopedia Britannica.
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DISCOUNT  . (I) A

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money-
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market
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term for the
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price paid in
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order to obtain immediate realization of a
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bill not yet due . If a bill for £xoo due six months hence is discounted at the
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rate of 3 % per annum, its holder will obtain £q8,
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ros. in
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cash for it . (2) A Stock-
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Exchange term applied to a
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security, not fully paid, which has fallen below its issue price, and so is said to stand at so much discount . See
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PREMIUM .

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