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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.


1. The amount by which a seller reduces a price for a product or asset in order to make it desirable for buyers. See also: Markup.

2. The difference between the price a broker-dealer charges for a retailer to buy a security and the price at which the broker-dealer sells the same security to a market maker. This may or may not be considered a commission.


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.


A markdown is the amount a broker-dealer earns on the sale of a fixed-income security and is the difference between the sales price and what the seller realizes on the sale.

The markdown may or may not appear in the commission column or be stated separately on a confirmation statement.

A markdown is determined, in part, by the demand for the security in the marketplace. A broker-dealer may charge a smaller markdown if the security can be resold at a favorable markup.

The term markdown also refers more generally to a reduced price on assets that a seller wants to unload and will sell at less than the original offering price.

References in periodicals archive ?
Multi-buys in the last week of November gave way to more conventional promotions and markdowns through the remainder of the Christmas period.
The response to a price markdown may be smaller, for example, if there was also a markdown in the previous week.
Avery Dennison's end-to-end solution and our unique scan/ print and apply markdown technology accurately translates markdown plans into effective execution, ensuring that the customer sees the right price at the moment of truth.
Revionics has the optimization technology to ensure we offer our customers the right price and markdowns, at the right time, through the right channel - whether it be through our catalog, online, in-store, or mobile," said Brian Linneman, Executive Vice President and Chief Merchandising Officer of Cabela's.
Podany knew it was time to address the markdown issue when its profits continued on a downward slope.
FINRA found that Morgan Stanley charged markups and markdowns ranging from below 5 percent to 13.
For example, they'll say, `We need 2 percent of our purchases for markdown money.
Dynamic Markdown Clustering that provides recommendations to group stores by markdown event - not by usual store zones.
The regional department store retailer posted a sales and earnings decline last week, missing analysts' estimates, but the company stressed that the benefit of its markdown strategy would pay off sometime in 2001.
They have become valued business partners and part of the overall Markdown team.
Effective markdown management can help retailers drive incremental buyer traffic, reduce excess inventory at the highest possible prices and support effective product phase-outs," said Malcolm Buxton, JustEnough's president and chief executive officer.
SAS, the leader in business analytics software and services, puts fast localized merchandising within reach as it unveils SAS([R]) High-Performance Markdown Optimization within its popular SAS([R]) Merchandise Intelligence suite.