discount The amount by which a bonds par exceeds its market - TopicsExpress



          

discount The amount by which a bonds par exceeds its market price. The amount by which the Net Asset Value per share of a closed-end funds holdings exceeds its market price. Anything selling below its normal price. opposite of premium. In the case of a convertible security, the difference between the gross proceeds received on sale and the convertibles price. This difference occurs whenever the market expects that the convertible security will be redeemed before the next coupon date, and so investors will receive accrued interest. Learn more about this term Usage Example Margin of safety is the principle of buying a security at a significant discount to its intrinsic value, which is thought to not only provide high-return opportunities, but also to minimize the downside risk of an investment.
Posted on: Sat, 09 Aug 2014 00:02:12 +0000

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