At A Discount
Definition of 'At A Discount'This specifically refers to stock that is sold for less than its nominal or par value. At a discount also refers to stocks or other securities that are sold below the present market value, similar to a sale on goods at a retail establishment.The nominal or par value for a security, which is detailed in the company charter, is the minimum price that a stock of a particular class can be sold for upon an initial public offering. Most states have laws preventing companies from issuing stock at a price less than par. |
|
Investopedia explains 'At A Discount'The nominal or par value of a stock arguably has no relation to the market price. In fact, many stocks today aren't even issued with a par value; and those that are often have values that don't in any way relate to the issuing price. For example, in 2012 Google's convertible preferred shares have a par value of $0.001 per share. Selling a stock below market value, on the other hand, is far more common and is typically done as a means of enticing buyers or creating buzz. |
Related Definitions
Articles Of Interest
-
How Risk Free Is The Risk-Free Rate Of Return?
This rate is rarely questioned - unless the economy falls into disarray. -
Top 4 Most Scandalous Insider Trading Debacles
Here we look at some of the landmark incidents of insider trading. -
Nobel Winners Are Economic Prizes
Before you try to profit from their theories, you should learn about the creators themselves. -
A Look At Primary And Secondary Markets
Knowing how the primary and secondary markets work is key to understanding how stocks trade. -
The Road To Creating An IPO
Through an Initial Public Offering, or IPO, a company raises capital by issuing shares of stock, or equity in a public market. Generally, this refers to when a company issues stock for the first ... -
The Copper King: An Empire Built On Manipulation
Find out how Yasuo Hamanaka's actions in the copper market forever changed the rules for commodity traders. -
7 Controversial Investing Theories
We take a closer look at the theories that attempt to explain and influence the market. -
Digging For Profitable Delistings
Deregistration can provide opportunities for savvy investors. We'll show you how to cash in. -
Breaking Down The Geometric Mean
Understanding portfolio performance, whether for a self-managed, discretionary portfolio or a non-discretionary portfolio, is vital to determining whether the portfolio strategy is working or ... -
Private Equity A Trendsetter For Stocks
In this article, we'll show you how private equity sets the trend for stocks everywhere.
Free Annual Reports