DISCOUNT

abatement or deduction from an account rendered; usually allowed when an account is paid earlier than stipulated, or to customers buying large quantities; in railway transactions known as ‘rebate.’ Stocks at le than par are at a discount; most common technical use of term is connected with the sale of bills of exchange due at a future date, and sold for cash; the abatement from the face value, calculated on the time that must elapse before the bill is due, is known as discount.