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 ?
The cornerstone of Caldor's plan, which was presented in December 1996, is a refocusing on its strategies as a full-line, upscale discount retailer, serving urban/suburban discount markets in the Northeast and Mid-Atlantic.
The cornerstone of Caldor's Plan is a refocusing of its strategies as a full-line, upscale discount retailer, serving urban/suburban discount markets in the Northeast and Mid-Atlantic regions.
Ultra-Max has unique benefits for the food, drug, home and discount markets.