Markdown

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DEFINITION of 'Markdown'

The difference between the highest current bid price among broker-dealers in the market and the lower price that a dealer charges a customer.

INVESTOPEDIA EXPLAINS 'Markdown'

The broker offers a lower price to try stimulate trading in hopes that they will make the money back on the extra commissions.

RELATED TERMS
  1. Dealer

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  2. Broker-Dealer

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  4. Bid

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