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Markdown
The difference between the highest current bid price among broker-dealers in the market and the lower price that a dealer charges a customer.

Notes:
The broker offers a lower price to try stimulate trading in hopes that they will make the money back on the extra commissions.

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.
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1. A decrease in a security price made by a dealer because of changing market conditions. For example, a bond trader may take a markdown in long-term bonds held in inventory when market interest rates rise. Compare markup.
2. The difference between the price paid by a dealer to a retail customer and the price at which the dealer can sell the same security to a market maker. Compare markup.
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