A blowout refers to the rapid sale of items or securities at very low prices in merchandising and securities markets. In the context of merchandising, it typically involves retail items sold quickly at steep discounts, whereas, in securities, it entails the rapid, complete sale of a new offering of shares.
A cash discount is a reduction in the invoice amount offered to customers to encourage early payment. By offering this discount, businesses can enhance cash flow and reduce the risk of non-payment.
A deep discount bond is a debt security that sells for a substantial amount below its face value, often at a discount of more than 25%. Unlike original issue discount bonds, these bonds were initially issued at their par value but have since declined in market value.
In the realm of accounting, a 'discount' refers to a variety of reductions applied to amounts due or outstanding, impacting both operational transactions and financial statements.
A discounted loan is a financial instrument that is offered or traded for less than its face value. It involves an initial discount from the loan's nominal amount, effectively making it cheaper for the borrower at inception.
A markdown refers to a reduction in the original retail selling price of merchandise. It applies only when the price is dropped below the original selling price established by adding a markup percentage to the cost of the merchandise.
Rebates can serve as powerful tools for boosting sales, incentivizing customer loyalty, and offering economic relief through various forms of refunds, making them an essential concept in both business and personal finance.
Rediscounting refers to the process where a bank or financial institution sells short-term negotiable debt instruments, such as bankers' acceptances and commercial paper, which have already been discounted. This service involves the exchange of these instruments for a cash amount that has been adjusted to reflect the prevailing interest rate.
Reduced rates refer to prices that are lower than the standard or basic rate, frequently used as an incentive to attract new customers or through special allowances and discounts.
A manufacturer's discount offered to a retailer or wholesaler for buying large quantities of merchandise, encouraging bulk purchasing and long-term business relationships.
