Discount \Dis"count`\, n. [Cf. F. d['e]compte. See Discount,
v. t.]
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.
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.
Source: Webster's Revised Unabridged Dictionary (1913)
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