Rediscount
To declare a
discount for the second time. For example, an
issuer may offer a
bond at a discount from its
par value to entice
investors. If this does not work, the issuer may discount the bonds further in order to encourage people to
buy the bond.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
rediscounting
the secondary purchase and sale of BILLS OF EXCHANGE, TREASURY BILLS and BONDS between their original issue and final redemption. When a bill of exchange is first issued it is usually purchased (i.e. ‘discounted’) by a DISCOUNT HOUSE. The discount house may hold on to the bill until maturity, or it may choose to on-sell it to another discount house, in which case the bill is then ‘rediscounted’. For example, if a bill with a face value of £1,000 redeemable in one year's time is sold initially for £900 (giving a £100 discount on its formal redemption value), then it might be resold or rediscounted for £950 after six months. See DISCOUNT, DISCOUNT MARKET.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
rediscounting
the purchase and sale of BILLS OF EXCHANGE, TREASURY BILLS and BONDS between their issue and redemption dates. For example, if a bond with a nominal value of £1,000 redeemable in one year's time is sold initially for £900 (giving a £100 discount on its formal redemption value), then it might be resold or rediscounted for £950 after six months. See also DISCOUNT, DISCOUNT MARKET.Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005