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 Definitions

Dealer

1. An individual or firm willing to buy or sell securities for their own account.2. One who purchases goods or services for resale to consumers.
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Bid

1. An offer made by an investor, a trader or a dealer to buy a security. The bid will stipulate both the price at which the buyer is willing to purchase the security and the quantity to ...
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Broker-Dealer

A person or firm in the business of buying and selling securities operating as both a broker and a dealer depending on the transaction.
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- Markup
  
  The difference between an investment's lowest current offering price among dealers and the higher price a dealer charges a customer. Markups occur when dealers act as principals (buying ...
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