- markdown
- The amount subtracted from the selling price of securities when they are sold to a dealer in the OTC market. Also, the discounted price of municipal bonds after the market has shown little interest in the issue at the original price. Bloomberg Financial Dictionary
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markdown mark‧down [ˈmɑːkdaʊn ǁ ˈmɑːrk-] also mark-down noun [countable]1. COMMERCE the act of reducing the price of something, or the amount by which the price is reduced:• The retailer's losses come from clearance markdowns of goods.
2. FINANCE a fall in the price of shares, bonds etc:• a $200 million markdown of a high-risk portfolio of shares of start-up companies
• Creditors will have to take big markdowns (= accept them ) from the face value of their bonds.
3. FINANCE a reduction in the rating of bonds etc (= estimate of the risk that they will not be repaid):* * *
The amount or percentage deducted from the bid price when a customer sells to a broker or market maker in the over-the-counter market, which is regarded as a type of commission. Markdown is also used to describe market makers adjusting their prices down to reflect changing market conditions. Opposite of markup.* * *
markdown UK US /ˈmɑːkdaʊn/ noun [C]► COMMERCE a lower price on an item than it was previously being sold for: »Rather than charging $24.50 and allowing room for price markdowns, they decided to market the shirts at a starting price of $19.50.
»They are advertising markdowns of 50% on some fall clothes and other merchandise.
big/heavy/steep markdown »Retailers have been forced to take big markdowns to lure shoppers concerned about the economy.
► FINANCE, STOCK MARKET a reduction in share prices: »The rest of the market rallied from an early markdown but trading conditions remained thin.
»The fraud prompted a savage markdown of blue-chips in London.
► FINANCE, STOCK MARKET the lower price that a broker pays when buying shares, bonds, etc. to sell at a higher price: »It may be illegal for a broker not to disclose a markdown.
Financial and business terms. 2012.