DISCOUNT

Definitions

1. 1. A counting off or deduction made from a gross sum on any account whatever; an allowance upon an account, debt, demand, price asked, and the like; something taken or deducted.
2. 2. A deduction made for interest, in advancing money upon, or purchasing, a bill or note not due; payment in advance of interest upon money.
3. 3. The rate of interest charged in discounting. At a discount, below par, or below the nominal value; hence, colloquially, out of favor; poorly esteemed; depreciated. -- Bank discount, a sum equal to the interest at a given rate on the principal (face) of a bill or note from the time of discounting until it become due. -- Discount broker, one who makes a business of discounting commercial paper; a bill broker. -- Discount day, a particular day of the week when a bank discounts bills. -- True discount, the interest which, added to a principal, will equal the face of a note when it becomes due. The principal yielding this interest is the present value of the note.