DEFINITION of 'Discount House'

Primarily operating in the United Kingdom, a firm that buys, sells, discounts and/or negotiates bills of exchange or promissory notes. This is generally performed on a large scale with transactions that also include government bonds and treasury bills.


Also called a bill broker.


In the United States, a discount house can refer to a large retail store that is able to offer consumer durables at discounted prices because of its ability to purchase in bulk and employ expense-controlling practices.

BREAKING DOWN 'Discount House'

A discount house is a money dealer that participates in the buying and discounting of bills of exchange and other financial products such as money markets, certain government bonds and banker's acceptances.

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RELATED FAQS
  1. Who uses bills of exchange?

    Find out who uses bills of exchange, why they are important in international trade and what happens when a bill is traded ... Read Answer >>
  2. What is the difference between a bill of exchange and a promissory note?

    Learn what bills of exchange and promissory notes are, along with notation of the primary differences between these two documents. Read Answer >>
  3. What is the difference between the cost of capital and the discount rate?

    Learn about the differences between the cost of capital and the discount rate as they relate to estimating a required return ... Read Answer >>
  4. What's the difference between bills, notes and bonds?

    Treasury bills (T-Bills), notes and bonds are marketable securities the U.S. government sells in order to pay off maturing ... Read Answer >>
  5. Where on the Internet can I find free sample templates for a bill of exchange?

    Understand the concept behind a bill of exchange, and learn about websites on the Internet where you can find free sample ... Read Answer >>
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