discount

noun /'dɪskaυnt/

1. the percentage by which the seller reduces the full price for the buyer

● to give a discount on bulk purchases

♦ to sell goods at a discount or at a discount price to sell goods below the normal price

♦ 10% discount for cash or 10% cash discount you pay 10% less if you pay in cash

2. the amount by which something is sold for less than its value

♦ currency at a discount a currency whose future value is less than its spot value

♦ shares which stand at a discount shares which are lower in price than their asset value or their par value

■ verb /dɪs'kaυnt/

1. to reduce prices to increase sales

2.

♦ to discount bills of exchange to buy or sell bills of exchange for less than the value written on them in order to cash them later

3. to react to something which may happen in the future (such as a possible takeover bid or currency devaluation)

♦ shares are discounting a rise in the dollar shares have risen in advance of a rise in the dollar price

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‘…pressure on the Federal Reserve Board to ease monetary policy and possibly cut its discount rate mounted yesterday’ [Financial Times]

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‘…banks refrained from quoting forward US/Hongkong dollar exchange rates as premiums of 100 points replaced the previous day’s discounts of up to 50 points’ [South China Morning Post]