What does discounting mean?

Definitions for discounting

Here are all the possible meanings and translations of the word discounting.

Webster Dictionary

  1. Discounting

    of Discount


  1. Discounting

    Discounting is a financial mechanism in which a debtor obtains the right to delay payments to a creditor, for a defined period of time, in exchange for a charge or fee. Essentially, the party that owes money in the present purchases the right to delay the payment until some future date. The discount, or charge, is simply the difference between the original amount owed in the present and the amount that has to be paid in the future to settle the debt. The discount is usually associated with a discount rate, which is also called the discount yield. The discount yield is simply the proportional share of the initial amount owed that must be paid to delay payment for 1 year. Discount Yield = "Charge" to Delay Payment for 1 year / Debt Liability It is also the rate at which the amount owed must rise to delay payment for 1 year. Since a person can earn a return on money invested over some period of time, most economic and financial models assume the "Discount Yield" is the same as the Rate of Return the person could receive by investing this money elsewhere over the given period of time covered by the delay in payment. The Concept is associated with the Opportunity Cost of not having use of the money for the period of time covered by the delay in payment. The relationship between the "Discount Yield" and the Rate of Return on other financial assets is usually discussed in such economic and financial theories involving the inter-relation between various Market Prices, and the achievement of Pareto Optimality through the operations in the Capitalistic Price Mechanism, as well as in the discussion of the "Efficient Market Hypothesis". The person delaying the payment of the current Liability is essentially compensating the person to whom he/she owes money for the lost revenue that could be earned from an investment during the time period covered by the delay in payment. Accordingly, it is the relevant "Discount Yield" that determines the "Discount", and not the other way around.ttt

How to pronounce discounting?

  1. Alex
    US English

How to say discounting in sign language?

  1. discounting


  1. Chaldean Numerology

    The numerical value of discounting in Chaldean Numerology is: 6

  2. Pythagorean Numerology

    The numerical value of discounting in Pythagorean Numerology is: 9

Examples of discounting in a Sentence

  1. Mohanned Aama:

    What we're seeing is the market actively pricing in the December rate hike, jumping ahead of the hike, discounting it ahead of time.

  2. Southwest President Tom Nelson:

    I think we're going to see the customers come back pretty nicely, it may be a month or two months, but they're going to come back. At this point, there's no notion of discounting Max flights.

  3. David Bailey:

    Heavy promotions and discounting by Volkswagen may be behind [ the diesel ] share of sales stabilizing in 2018 in its home German market... that doesn't mark a turn around for diesels, however.

  4. Chief Financial Officer Martin Novak:

    The logic is very simple, yes, it makes no sense to build anything new( with power prices) at 30 euros per megawatt hour anymore but it does make sense to buy something, discounting it with cash flow.

  5. Glenn Bennett:

    You can imagine if they are buying it three times faster we are not discounting ... They are buying it at full price, a 20 percent improvement of full-price sales could add tens of millions to the bottom line.

Images & Illustrations of discounting

  1. discountingdiscountingdiscountingdiscountingdiscounting

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Translations for discounting

From our Multilingual Translation Dictionary

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"discounting." Definitions.net. STANDS4 LLC, 2020. Web. 22 Feb. 2020. <https://www.definitions.net/definition/discounting>.

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