discount security

0.01 sec.

discount security

1. Any security that is issued at less than face value. See also original-issue discount.

2. A money market security, such as a Treasury bill or commercial paper, that is issued at a discount but that matures at face value. The only income received by the investor is the difference between the price paid and the proceeds received at maturity or the sale of the security. See also bank-discount basis.

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Financial Dictionary

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