term:

Discount

discount n

: a reduction made from the gross amount or value of something: as
a : a reduction made from a regular or list price or a proportionate deduction from a debt account usually made for prompt payment or for payment in cash
b : a reduction made for interest in advancing money upon or purchasing a note not yet due
c : a reduction in the price of a bond see also discount bond at bond
d : the sale of securities that are issued below and redeemed at face value compare premium
[dis-kant, dis-kant] vt 1 a : to make a deduction from usually for cash or prompt payment
b : to sell or offer at a lowered price
2 : to lend money on after deducting a discount [banks negotiable instruments]
3 : to take into account (a future event or prospect) in making present calculations
vi
: to give or make discounts
[dis-kant] adj 1 a : selling goods or services at a discount [a broker]
b : offered or sold at a discount [ securities]
2 : reflecting a discount [the price]

Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.