Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
Bank discount
the interest that a bank °, ducts in advance on a note. See discoi?n'l _ bank draft see draft
Discount
n. 1. A reduction from the full amount or value of something, esp. a price. 2. An advance deduction of interest when a person lends money on a note, bill of exchange, or other commercial paper, resulting in its present value. See PRESENT VALUE. 3. The amount by which a security's market value is below its face value. Cf. PREMIUM (3). - discount, ub
For example, a wholesaler or distributor usu. receives a greater discount than a retailer. quantity discount
See volume discount.
Rediscount
n. 1. The act or process of discounting a negotiable instrument that has already been discounted, as by a bank. 2. (usu. pl.) A negotiable instrument that has been discounted a second time. - rediscount, vb. See DISCOUNT.
bond discount
See DISCOUNT (3).
bulk discount
See volume discount under DISCOUNT.
bulk discount.
See volume discount.
cash discount
1. A seller's price reduction in exchange for an immediate cash payment. 2. A reduction from the stated price if the bill is paid on or before a specified date.
discount bond
A bond sold at its current market value, which is less than its face value. - Also termed non-interest-bearing bond.
discount broker
See BROKER.
discount interest
The interest that accrues on a discounted investment instrument (such as a government bond) as it matures. ( The investor receives the interest when the instrument is redeemed.
discount interest.
See INTEREST (3).
discount loan
A loan in which interest is deducted in advance, at the time the loan is made.
discount loan.
See LOAN.
discount market
The portion of the money market in which banks and other financial institutions trade commercial paper.
discount market.
See MARKET.
discount rate
1. The interest rate at which a member bank may borrow money from the Federal Reserve. ( This rate controls the supply of money available to banks for lending. Cf. rediscount rate. 2. The percentage of a commercial paper's face value paid by an issuer who sells the instrument to a financial institution. 3. The interest rate used in calculating present value.
discount share.
See discount stock under STOCK.
discount stock
A stock share issued for less than par value. ( Discount stock is considered a type of watered stock, the issuance of which may impose liability on the recipient for the difference between the par value and the cash amount paid. - Also termed discount share.
discount yield
The yield on a security sold at a discount.
discounted cash flow
See CASH FLOW.
functional discount
1. A supplier's price discount given to a purchaser based on the purchaser's role (such as warehousing or advertising) in the supplier's distributive system. 0 This type of discount typically reflects the value of services performed by the purchaser for the supplier. If a functional discount constitutes a reasonable reimbursement for the purchaser's actual marketing functions, it does not constitute unlawful price discrimination and does not violate antitrust laws. 2. A supplier's price discount based on the purchaser's relative distance from the supplier in the chain of distribution.
functional discount.
See DISCOUN'
minority discount
A reduction in the value of a closely held business's shares that are owned by someone who has only a minority interest in the business. ( The concept underlying a minority discount is recognition that controlling shares - those owned by someone who can control the business - are worth more in the market than noncontrolling shares. But when dissenting shareholders object to a corporate act, such as a merger, and become entitled to have their shares appraised and bought by the corporation, many courts hold that incorporating a minority discount into the valuation of the dissenters' shares is inequitable and is not permitted. See APPRAISAL REMEDY.
mortgage discount
The difference between the mortgage principal and the amount the mortgage actually sells for; the up-front charge by a lender at a real-estate closing for the costs of financing. ( Although usu. paid by the buyer, the discount is sometimes paid by the seller when required by law, as with a VA mortgage. - Also termed point; mortgage point; loan-brokerage fee; new-loan fee.
original-issue discount
The amount by which a bond is sold below its par value when it is first issued. - Abbr. OID.
quantity discount
See volume discount under DISCOUNT.
rediscount rate
The interest rate at which a member bank may borrow from the Federal Reserve on a loan secured by commercial paper that has already been resold by the bank. stated rate See nominal rate.
trade discount
1. A discount from list price offered to all customers of a given type - for example, a discount offered by a lumber dealer to building contractors. 2. The difference between a seller's list price and the price at. which the dealer actually sells goods to the trade.
volume discount
See DISCOUNT.