discount market


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discount market

a market engaged in the buying and selling of short-dated BILLS OF EXCHANGE and TREASURY BILLS. Such transactions are conducted through a number of DISCOUNT HOUSES which use money borrowed primarily from the COMMERCIAL BANKS (usually on a revolving day-to-day basis) to purchase bills (i.e. to ‘discount’ them) which they then hold until maturity or sell to each other (‘re-discount’) or more commonly on-sell to the commercial banks. When the discount houses find themselves temporarily unable to cover their purchase commitments by borrowing from the commercial banks, it is possible for them to obtain additional funds from the BANK OF ENGLAND in its capacity as the ‘lender of last resort’. See ACCEPTING HOUSE.

discount market

a market engaged in the buying and selling of short-dated BILLS OF EXCHANGE and TREASURY BILLS. Such transactions are conducted through a number of DISCOUNT HOUSES that use money borrowed primarily from the COMMERCIAL BANKS (usually on a revolving day-to-day basis - CALL MONEY) to purchase bills (i.e. to ‘discount’ them). They then hold these bills until maturity or sell them to each other (‘re-discount’) or, more commonly on-sell them to the commercial banks (see DISCOUNT 5). When the discount houses find themselves temporarily unable to cover their purchase commitments by borrowing from the commercial banks, it is possible for them to obtain additional funds from the BANK OF ENGLAND in its capacity as the LENDER OF LAST RESORT. See TENDER ISSUE.
References in periodicals archive ?
We have been saving up for a deposit for over a year and had been looking around for a place to live that we could both afford when we came across Bellway's discount market value scheme.
FNS)--Shelagh O'Neill, a loyal Zellers shopper for 20 years, doesn't think much of Wal-Mart, which recently launched its high-profile assault on the Canadian discount market.
The consulting firm recommends that other retailers adopt a tactic of convenience with a focus on one-stop shopping, while ceding the discount market in H&BAs to discounters.
In this second edition of the discount apparel retailing report, the growing global discount market is evaluated with forecasts to 2012.
JJB also fell out of favour with the City after analysts voiced their concern over the move by the UK's biggest sports retailer into the discount market through the purchase of TJ'sand its stock subsequently lost 40pc of its value.
2 million in onetime charges stemming from the decision to shutter the Super Discount Market operation, as well as store closing costs and an asset impairment charge related to the Delvita unit in the Czech Republic and Slovakia.
There is plenty of scope for expansion as the discount market further grows.
The original purchase price and how it was purchased - through a dividend reinvestment plan, an employee stock option plan, or at a discount market price - has a direct impact on cost basis, as do corporate actions such as stock splits, mergers or spin-offs.
In a report on the grocery discount market IGD said number two chain Lidl stood little chance of knocking Aldi off its top spot.
There is a more rational competitive environment and tighter escrow statute enforcement of small manufacturers has resulted in moderation of growth of deep discount market share.
The concept is looking increasingly robust in a tough discount market segment.