Discount — Defs

01 v. t. To deduct from an account, debt, charge, and the like; to make an abatement of; as, merchants sometimes discount five or six per cent for p…

imp. & p. p. Discounted; p. pr. & vb. n. Discounting

1.
To deduct from an account, debt, charge, and the like; to make an abatement of; as, merchants sometimes discount five or six per cent for prompt payment of bills.
2.
To lend money upon, deducting the discount or allowance for interest; as, the banks discount notes and bills of exchange.
“Discount only unexceptionable paper.” — Walsh.
3.
To take into consideration beforehand; to anticipate and form conclusions concerning (an event).
4.
To leave out of account; to take no notice of.[R.]
“Of the three opinions (I discount Brown's).” — Sir W. Hamilton.

02 v. i. To lend, or make a practice of lending, money, abating the discount; as, the discount for sixty or ninety days.

1.
To lend, or make a practice of lending, money, abating the discount; as, the discount for sixty or ninety days.

03 n. 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…

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.
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.
The rate of interest charged in discounting.

Phrases & compounds

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.